APLI.TO WACC - Weighted Average Cost of Capital

The WACC of Appili Therapeutics Inc (APLI.TO) is 7.7%.

The Cost of Equity of Appili Therapeutics Inc (APLI.TO) is 28.20%.

The Cost of Debt of Appili Therapeutics Inc (APLI.TO) is 5.65%.

	Range	Selected
Cost of equity	13.40% - 43.00%	28.20%
Tax rate	0.60% - 1.20%	0.90%
Cost of debt	4.30% - 7.00%	5.65%
WACC	5.1% - 10.3%	7.7%

WACC

APLI.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2	6.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	43.00%

Tax rate	0.60%	1.20%
Debt/Equity ratio	9.77	9.77
Cost of debt	4.30%	7.00%

After-tax WACC	5.1%	10.3%


Selected WACC	7.7%

APLI.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 APLI.TO:

cost_of_equity (28.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2) + 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.