APLV.CN WACC - Weighted Average Cost of Capital
The WACC of Apartmentlove Inc (APLV.CN) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 7.7% | 6.95% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.6% - 6.1% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.59 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 7.7% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1.64 | 1.64 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.6% | 6.1% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| APLV.CN | Apartmentlove Inc | 1.64 | 0.38 | 0.17 |
| Low | High | |
| Unlevered beta | 0.17 | 0.17 |
| Relevered beta | 0.39 | 0.39 |
| Adjusted relevered beta | 0.59 | 0.59 |
APLV.CN'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 APLV.CN:
cost_of_equity (6.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.