AKU.TO WACC - Weighted Average Cost of Capital

The WACC of Akumin Inc (AKU.TO) is 8.5%.

The Cost of Equity of Akumin Inc (AKU.TO) is 12.15%.

The Cost of Debt of Akumin Inc (AKU.TO) is 8.25%.

	Range	Selected
Cost of equity	10.40% - 13.90%	12.15%
Tax rate	15.40% - 24.40%	19.90%
Cost of debt	7.80% - 8.70%	8.25%
WACC	7.9% - 9.1%	8.5%

WACC

AKU.TO WACC calculation

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	10.40%	13.90%

Tax rate	15.40%	24.40%
Debt/Equity ratio	1.94	1.94
Cost of debt	7.80%	8.70%

After-tax WACC	7.9%	9.1%


Selected WACC	8.5%

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.