ADPT.CN
Adaptogenics Health Corp
Price:  
0.03 
CAD
Volume:  
4,050.00
Canada | N/A
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ADPT.CN WACC - Weighted Average Cost of Capital

The WACC of Adaptogenics Health Corp (ADPT.CN) is 3.3%.

The Cost of Equity of Adaptogenics Health Corp (ADPT.CN) is 2.85%.
The Cost of Debt of Adaptogenics Health Corp (ADPT.CN) is 5.00%.

Range Selected
Cost of equity 2.60% - 3.10% 2.85%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.4% - 3.1% 3.3%
WACC

ADPT.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -1.48 -1.48
Additional risk adjustments 7.5% 8.0%
Cost of equity 2.60% 3.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 3.4% 3.1%
Selected WACC 3.3%

ADPT.CN's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ADPT.CN:

cost_of_equity (2.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-1.48) + risk_adjustments (7.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.