AGN.CN WACC - Weighted Average Cost of Capital
The WACC of Algernon Pharmaceuticals Inc (AGN.CN) is 4.9%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.3% | 6.05% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.5% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.3% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.5% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AGN.CN | Algernon Pharmaceuticals Inc | 0.89 | -0.39 | -0.23 |
| BEV.CN | Bevcanna Enterprises Inc | 0.52 | -1.57 | -1.14 |
| BUX.CN | BioMark Diagnostics Inc | 0.03 | -0.24 | -0.23 |
| IZO.CN | Izotropic Corp | 0.11 | -0.26 | -0.24 |
| MYM.CN | MYM Nutraceuticals Inc | 0.01 | 0.92 | 0.92 |
| PILL.CN | Canntab Therapeutics Ltd | 9.46 | 1.7 | 0.21 |
| PRT.CN | Plymouth Rock Technologies Inc | 0.04 | 0.12 | 0.12 |
| ROSN | Rosinbomb | 0.04 | 1.19 | 1.16 |
| SHRC.CN | Sharc International Systems Inc | 0.01 | 1.54 | 1.53 |
| TAUG | Tauriga Sciences Inc | 1683.25 | -1.37 | 0 |
| USMJ | North American Cannabis Holdings Inc | 187.7 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0.12 |
| Relevered beta | 0 | 0.27 |
| Adjusted relevered beta | 0.33 | 0.51 |
AGN.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 AGN.CN:
cost_of_equity (6.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.