BLAB.CN
Britannia Life Sciences Inc
Price:  
0.07 
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 9.1%.

The Cost of Equity of Britannia Life Sciences Inc (BLAB.CN) is 5.55%.
The Cost of Debt of Britannia Life Sciences Inc (BLAB.CN) is 14.30%.

Range Selected
Cost of equity 5.20% - 5.90% 5.55%
Tax rate 0.20% - 0.80% 0.50%
Cost of debt 5.40% - 23.20% 14.30%
WACC 5.3% - 12.9% 9.1%
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 -0.28 -0.28
Additional risk adjustments 3.5% 4.0%
Cost of equity 5.20% 5.90%
Tax rate 0.20% 0.80%
Debt/Equity ratio 0.69 0.69
Cost of debt 5.40% 23.20%
After-tax WACC 5.3% 12.9%
Selected WACC 9.1%

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 (5.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.28) + risk_adjustments (3.75%)

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