APLI.TO
Appili Therapeutics Inc
Price:  
0.03 
CAD
Volume:  
142,658.00
Canada | Pharmaceuticals
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APLI.TO WACC - Weighted Average Cost of Capital

The WACC of Appili Therapeutics Inc (APLI.TO) is 8.6%.

The Cost of Equity of Appili Therapeutics Inc (APLI.TO) is 12.55%.
The Cost of Debt of Appili Therapeutics Inc (APLI.TO) is 6.85%.

Range Selected
Cost of equity 8.90% - 16.20% 12.55%
Tax rate 0.10% - 0.30% 0.20%
Cost of debt 6.70% - 7.00% 6.85%
WACC 7.4% - 9.8% 8.6%
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 1.12 1.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 16.20%
Tax rate 0.10% 0.30%
Debt/Equity ratio 2.25 2.25
Cost of debt 6.70% 7.00%
After-tax WACC 7.4% 9.8%
Selected WACC 8.6%

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 (12.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.12) + 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.