AKU.TO WACC - Weighted Average Cost of Capital
The WACC of Akumin Inc (AKU.TO) is 8.5%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.9% | 12.15% |
| Tax rate | 15.4% - 24.4% | 19.9% |
| Cost of debt | 7.8% - 8.7% | 8.25% |
| WACC | 7.9% - 9.1% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 1.9% | 2.4% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 1.64 | 1.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.9% |
| Tax rate | 15.4% | 24.4% |
| Debt/Equity ratio | 1.94 | 1.94 |
| Cost of debt | 7.8% | 8.7% |
| After-tax WACC | 7.9% | 9.1% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AKU.TO | Akumin Inc | 1.94 | 0.95 | 0.36 |
| BDSX | Biodesix, Inc. | 0.82 | 0.41 | 0.24 |
| ENZ | Enzo Biochem Inc | 0.01 | 1.9 | 1.88 |
| GTMS.TO | Greenbrook TMS Inc | 5.15 | 1.71 | 0.32 |
| NPTH.V | NeuPath Health Inc | 0.92 | 1.03 | 0.58 |
| PMD | Psychemedics Corp | 0.02 | 1.03 | 1.02 |
| PTQ.V | Protech Home Medical Corp | 0.15 | 1.94 | 1.72 |
| STRR | Star Equity Holdings Inc | 1.49 | 0.59 | 0.26 |
| VMD.TO | Viemed Healthcare Inc | 0 | 0.46 | 0.46 |
| XGN | Exagen Inc | 0.14 | 0.78 | 0.7 |
| Low | High | |
| Unlevered beta | 0.42 | 0.63 |
| Relevered beta | 1.96 | 2.15 |
| Adjusted relevered beta | 1.64 | 1.77 |
AKU.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 AKU.TO:
cost_of_equity (12.15%) = risk_free_rate (2.15%) + equity_risk_premium (5.70%) * adjusted_beta (1.64) + 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.