APS.TO
Aptose Biosciences Inc
Price:  
2.79 
CAD
Volume:  
1,604.00
Canada | Biotechnology
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APS.TO WACC - Weighted Average Cost of Capital

The WACC of Aptose Biosciences Inc (APS.TO) is 8.7%.

The Cost of Equity of Aptose Biosciences Inc (APS.TO) is 13.75%.
The Cost of Debt of Aptose Biosciences Inc (APS.TO) is 5.00%.

Range Selected
Cost of equity 10.20% - 17.30% 13.75%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 10.5% 8.7%
WACC

APS.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.36 2.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 17.30%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 10.5%
Selected WACC 8.7%

APS.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 APS.TO:

cost_of_equity (13.75%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (1.36) + 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.