CARE.TO WACC - Weighted Average Cost of Capital
The WACC of Dialogue Health Technologies Inc (CARE.TO) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.3% | 7.05% |
| Tax rate | 0.1% - 0.5% | 0.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.7% - 8.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.51 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.3% |
| Tax rate | 0.1% | 0.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.7% | 8.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CARE.TO | Dialogue Health Technologies Inc | 0.01 | 0.55 | 0.54 |
| AND.TO | Andlauer Healthcare Group Inc | 0.09 | 0.26 | 0.24 |
| DRDR.TO | MCI Onehealth Technologies Inc | 0.4 | -1.46 | -1.04 |
| GTMS.TO | Greenbrook TMS Inc | 5.15 | 1.71 | 0.28 |
| MBCN.TO | MindBeacon Holdings Inc | 0.02 | 0.91 | 0.89 |
| NLH.V | Nova Leap Health Corp | 0.16 | -0.01 | -0.01 |
| NPTH.V | NeuPath Health Inc | 0.88 | 0.94 | 0.5 |
| WELL.TO | WELL Health Technologies Corp | 0.45 | 1.61 | 1.11 |
| Low | High | |
| Unlevered beta | 0.27 | 0.51 |
| Relevered beta | 0.27 | 0.51 |
| Adjusted relevered beta | 0.51 | 0.67 |
CARE.TO'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 CARE.TO:
cost_of_equity (7.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.