BRM.V
Biorem Inc
Price:  
2.33 
CAD
Volume:  
51,071.00
Canada | Commercial Services & Supplies
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BRM.V WACC - Weighted Average Cost of Capital

The WACC of Biorem Inc (BRM.V) is 8.0%.

The Cost of Equity of Biorem Inc (BRM.V) is 8.40%.
The Cost of Debt of Biorem Inc (BRM.V) is 5.00%.

Range Selected
Cost of equity 6.60% - 10.20% 8.40%
Tax rate 24.70% - 28.90% 26.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 9.6% 8.0%
WACC

BRM.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.53 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 10.20%
Tax rate 24.70% 28.90%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 9.6%
Selected WACC 8.0%

BRM.V'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 BRM.V:

cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.