AUSA.CN
Australis Capital Inc
Price:  
0.03 
CAD
Volume:  
1,047,990.00
United States | Pharmaceuticals
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AUSA.CN WACC - Weighted Average Cost of Capital

The WACC of Australis Capital Inc (AUSA.CN) is 6.3%.

The Cost of Equity of Australis Capital Inc (AUSA.CN) is 6.85%.
The Cost of Debt of Australis Capital Inc (AUSA.CN) is 5.50%.

Range Selected
Cost of equity 5.80% - 7.90% 6.85%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.2% - 7.3% 6.3%
WACC

AUSA.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.51 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.90%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 7.00%
After-tax WACC 5.2% 7.3%
Selected WACC 6.3%

AUSA.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 AUSA.CN:

cost_of_equity (6.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.