CBP.CN WACC - Weighted Average Cost of Capital
The WACC of Certive Solutions Inc (CBP.CN) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.6% - 10.8% | 8.2% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.4% - 6.1% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 10.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 4.85 | 4.85 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.4% | 6.1% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CBP.CN | Certive Solutions Inc | 4.85 | 1.89 | 0.41 |
| AMPD.CN | Ampd Ventures Inc | 4.32 | 0.72 | 0.17 |
| FFLO | Free Flow Inc | 0.28 | -0.79 | -0.65 |
| FNAM | Evolutionary Genomics Inc | 2810.62 | -0.73 | 0 |
| HALB | Halberd Corp | 1.17 | 0.98 | 0.53 |
| ITOX | Iiot-Oxys Inc | 0.99 | 1.17 | 0.68 |
| MDEX | Madison Technologies Inc | 54.33 | 1.43 | 0.03 |
| ORTH.CN | Ortho Regenerative Technologies Inc | 0.58 | 0.42 | 0.3 |
| VITX | Vitana-X Inc | 3.49 | -0.96 | -0.27 |
| Low | High | |
| Unlevered beta | 0.06 | 0.27 |
| Relevered beta | 0.22 | 1.13 |
| Adjusted relevered beta | 0.48 | 1.09 |
CBP.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 CBP.CN:
cost_of_equity (8.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.