AIM.TO
Aimia Inc
Price:  
2.60 
CAD
Volume:  
50,000.00
Canada | Media
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AIM.TO WACC - Weighted Average Cost of Capital

The WACC of Aimia Inc (AIM.TO) is 8.3%.

The Cost of Equity of Aimia Inc (AIM.TO) is 7.80%.
The Cost of Debt of Aimia Inc (AIM.TO) is 11.70%.

Range Selected
Cost of equity 5.70% - 9.90% 7.80%
Tax rate 14.90% - 29.60% 22.25%
Cost of debt 11.70% - 11.70% 11.70%
WACC 7.4% - 9.2% 8.3%
WACC

AIM.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.5 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 9.90%
Tax rate 14.90% 29.60%
Debt/Equity ratio 0.69 0.69
Cost of debt 11.70% 11.70%
After-tax WACC 7.4% 9.2%
Selected WACC 8.3%

AIM.TO'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 AIM.TO:

cost_of_equity (7.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.