CISC.CN
Ciscom Corp
Price:  
0.04 
CAD
Volume:  
11,220.00
Canada | N/A
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CISC.CN WACC - Weighted Average Cost of Capital

The WACC of Ciscom Corp (CISC.CN) is 8.6%.

The Cost of Equity of Ciscom Corp (CISC.CN) is 12.90%.
The Cost of Debt of Ciscom Corp (CISC.CN) is 7.00%.

Range Selected
Cost of equity 11.60% - 14.20% 12.90%
Tax rate 8.20% - 17.30% 12.75%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.3% - 8.9% 8.6%
WACC

CISC.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.65 1.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.60% 14.20%
Tax rate 8.20% 17.30%
Debt/Equity ratio 1.71 1.71
Cost of debt 7.00% 7.00%
After-tax WACC 8.3% 8.9%
Selected WACC 8.6%

CISC.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 CISC.CN:

cost_of_equity (12.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.65) + 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.