AND.TO
Andlauer Healthcare Group Inc
Price:  
52.20 
CAD
Volume:  
20,245.00
Canada | Health Care Providers & Services
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AND.TO WACC - Weighted Average Cost of Capital

The WACC of Andlauer Healthcare Group Inc (AND.TO) is 6.7%.

The Cost of Equity of Andlauer Healthcare Group Inc (AND.TO) is 7.00%.
The Cost of Debt of Andlauer Healthcare Group Inc (AND.TO) is 5.00%.

Range Selected
Cost of equity 5.50% - 8.50% 7.00%
Tax rate 23.50% - 26.70% 25.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 8.1% 6.7%
WACC

AND.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.45 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.50%
Tax rate 23.50% 26.70%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 8.1%
Selected WACC 6.7%

AND.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 AND.TO:

cost_of_equity (7.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.