AT.TO WACC - Weighted Average Cost of Capital
The WACC of AcuityAds Holdings Inc (AT.TO) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.34 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AT.TO | AcuityAds Holdings Inc | 0.08 | 3.55 | 3.36 |
| ADST | AdStar Inc | 0.01 | 0 | 0 |
| AUTO | Autoweb Inc | 1.85 | 2.07 | 0.88 |
| CNFN | Cfn Enterprises Inc | 0.3 | 1.53 | 1.25 |
| EQ.V | EQ Inc | 0.02 | -0.05 | -0.05 |
| GSMG | Glory Star New Media Group Holdings Ltd | 0.11 | 0.46 | 0.43 |
| KBNT | Kubient Inc | 53.56 | 35.65 | 0.88 |
| LKCO | Luokung Technology Corp | 70.04 | 0.11 | 0 |
| MOBO | Mobile Lads Corp | 2.25 | -52.37 | -19.76 |
| TPNI | Pulse Network Inc | 3420.46 | 1.28 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0.61 |
| Relevered beta | 0.01 | 0.16 |
| Adjusted relevered beta | 0.34 | 0.44 |
AT.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 AT.TO:
cost_of_equity (6.45%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.34) + 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.