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.