BLAB.CN
Britannia Life Sciences Inc
Price:  
0.06 
CAD
Volume:  
1,000.00
Canada | N/A
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BLAB.CN WACC - Weighted Average Cost of Capital

The WACC of Britannia Life Sciences Inc (BLAB.CN) is 9.3%.

The Cost of Equity of Britannia Life Sciences Inc (BLAB.CN) is 5.65%.
The Cost of Debt of Britannia Life Sciences Inc (BLAB.CN) is 14.30%.

Range Selected
Cost of equity 5.30% - 6.00% 5.65%
Tax rate 0.20% - 0.80% 0.50%
Cost of debt 5.40% - 23.20% 14.30%
WACC 5.4% - 13.3% 9.3%
WACC

BLAB.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.36 -0.36
Additional risk adjustments 4.0% 4.5%
Cost of equity 5.30% 6.00%
Tax rate 0.20% 0.80%
Debt/Equity ratio 0.75 0.75
Cost of debt 5.40% 23.20%
After-tax WACC 5.4% 13.3%
Selected WACC 9.3%

BLAB.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 BLAB.CN:

cost_of_equity (5.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.36) + risk_adjustments (4.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.