APLI.TO WACC - Weighted Average Cost of Capital

The WACC of Appili Therapeutics Inc (APLI.TO) is 10.0%.

The Cost of Equity of Appili Therapeutics Inc (APLI.TO) is 23.75%.

The Cost of Debt of Appili Therapeutics Inc (APLI.TO) is 6.70%.

	Range	Selected
Cost of equity	17.90% - 29.60%	23.75%
Tax rate	0.30% - 0.50%	0.40%
Cost of debt	6.40% - 7.00%	6.70%
WACC	8.6% - 11.4%	10.0%

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	2.89	4.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.90%	29.60%

Tax rate	0.30%	0.50%
Debt/Equity ratio	4.06	4.06
Cost of debt	6.40%	7.00%

After-tax WACC	8.6%	11.4%


Selected WACC	10.0%

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 (23.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.89) + 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.