BAMM.CN
Body and Mind Inc
Price:  
0.03 
CAD
Volume:  
11,200
Canada | Pharmaceuticals

BAMM.CN WACC - Weighted Average Cost of Capital

The WACC of Body and Mind Inc (BAMM.CN) is 6.7%.

The Cost of Equity of Body and Mind Inc (BAMM.CN) is 7.55%.
The Cost of Debt of Body and Mind Inc (BAMM.CN) is 7%.

RangeSelected
Cost of equity6.0% - 9.1%7.55%
Tax rate5.2% - 8.8%7%
Cost of debt7.0% - 7.0%7%
WACC6.5% - 6.9%6.7%
WACC

BAMM.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.560.81
Additional risk adjustments0.0%0.5%
Cost of equity6.0%9.1%
Tax rate5.2%8.8%
Debt/Equity ratio
4.024.02
Cost of debt7.0%7.0%
After-tax WACC6.5%6.9%
Selected WACC6.7%

BAMM.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 BAMM.CN:

cost_of_equity (7.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.