BIOV.CN WACC - Weighted Average Cost of Capital
The WACC of Biovaxys Technology Corp (BIOV.CN) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.6% | 5.75% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.6% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.6% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.6% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIOV.CN | Biovaxys Technology Corp | 0.01 | -0.23 | -0.23 |
| AMMJ | American Cannabis Company Inc | 3.35 | -1.58 | -0.46 |
| CGN.CN | Cognetivity Neurosciences Ltd | 1.46 | 1.31 | 0.63 |
| MDEX | Madison Technologies Inc | 54.33 | 1.27 | 0.03 |
| SEDO | Seedo Corp | 0.21 | 1.05 | 0.91 |
| TSPG | TGI Solar Power Group Inc | 0 | 0.07 | 0.07 |
| VITX | Vitana-X Inc | 3.49 | -0.96 | -0.27 |
| ZEU.CN | Zeu Technologies Inc | 12.84 | 0.07 | 0.01 |
| Low | High | |
| Unlevered beta | -0.04 | 0.04 |
| Relevered beta | 0.01 | 0.1 |
| Adjusted relevered beta | 0.34 | 0.4 |
BIOV.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 BIOV.CN:
cost_of_equity (5.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * 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.