AJX.TO WACC - Weighted Average Cost of Capital
The WACC of Agjunction Inc (AJX.TO) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.5% | 6.95% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.4% - 8.5% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.33 | 0.64 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 8.5% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.4% | 8.5% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AJX.TO | Agjunction Inc | 0.01 | 2.41 | 2.39 |
| ATVK | Ameritek Ventures | 0.28 | -0.8 | -0.66 |
| BDR | Blonder Tongue Laboratories Inc | 0.99 | 0.65 | 0.37 |
| CLRO | Clearone Inc | 1.1 | 0.44 | 0.24 |
| FBCE | Fibercore Inc | 12.19 | -13.4 | -1.35 |
| GNRD | General Datacomm Industries Inc | 64716.02 | 20.65 | 0 |
| LTE.V | Lite Access Technologies Inc | 0.08 | -0.1 | -0.09 |
| TKOI | Telkonet Inc | 0.89 | -3.53 | -2.13 |
| WSTL | Westell Technologies Inc | 0.99 | 0.14 | 0.08 |
| YTY.V | Wi2wi Corp | 1.51 | 1.04 | 0.49 |
| Low | High | |
| Unlevered beta | -0.04 | 0.15 |
| Relevered beta | 0 | 0.46 |
| Adjusted relevered beta | 0.33 | 0.64 |
AJX.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 AJX.TO:
cost_of_equity (6.95%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.33) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.