APURE.BK WACC - Weighted Average Cost of Capital

The WACC of Agripure Holdings PCL (APURE.BK) is 9.5%.

The Cost of Equity of Agripure Holdings PCL (APURE.BK) is 9.30%.

The Cost of Debt of Agripure Holdings PCL (APURE.BK) is 15.90%.

	Range	Selected
Cost of equity	7.80% - 10.80%	9.30%
Tax rate	11.60% - 16.90%	14.25%
Cost of debt	4.00% - 27.80%	15.90%
WACC	7.5% - 11.5%	9.5%

WACC

APURE.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.7	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.80%

Tax rate	11.60%	16.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	27.80%

After-tax WACC	7.5%	11.5%


Selected WACC	9.5%

APURE.BK'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 APURE.BK:

cost_of_equity (9.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.7) + 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.