BIO.CN WACC - Weighted Average Cost of Capital
The WACC of Biome Grow Inc (BIO.CN) is 3.9%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.2% | 5.5% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 4.0% | 3.9% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 7.45 | 7.45 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 4.0% |
| Selected WACC | 3.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIO.CN | Biome Grow Inc | 7.45 | -0.25 | -0.04 |
| ACCA | Acacia Diversified Holdings Inc | 22199.52 | -0.93 | 0 |
| CHM.CN | Chemistree Technology Inc | 2.06 | -0.31 | -0.12 |
| IPCI.TO | Intellipharmaceutics International Inc | 1.06 | -0.25 | -0.14 |
| KAYS | Kaya Holdings Inc | 5.13 | 0.94 | 0.2 |
| KOAN | Resonate Blends Inc | 27.07 | 0.88 | 0.04 |
| MPXI.CN | MPX International Corp | 27.06 | 0 | 0 |
| POLXF | Polydex Pharmaceuticals Ltd | 0.06 | 0.93 | 0.88 |
| TRGM | Targeted Medical Pharma Inc | 175378.94 | 0.7 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0 |
| Relevered beta | 0 | 0 |
| Adjusted relevered beta | 0.33 | 0.33 |
BIO.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 BIO.CN:
cost_of_equity (5.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.