CODE.CN WACC - Weighted Average Cost of Capital
The WACC of Codebase Ventures Inc (CODE.CN) is 4.7%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.5% | 5.65% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.1% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.1% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CODE.CN | Codebase Ventures Inc | 1.04 | 16.63 | 9.44 |
| FPVD | Force Protection Video Equipment Corp | 0 | 0.95 | 0.95 |
| IPSI | Innovative Payment Solutions Inc | 57.21 | -0.97 | -0.02 |
| IRNS | Ironstone Group Inc | 909.43 | 1.61 | 0 |
| LBI.V | Lions Bay Capital Inc | 0.13 | -1.32 | -1.2 |
| LITT.V | Roadman Investments Corp | 0.23 | 0.22 | 0.19 |
| MRBL.CN | Marble Financial Inc | 0.64 | -0.56 | -0.38 |
| SRSG | Spirits Time International Inc | 0.8 | 1.18 | 0.74 |
| XTRM | Extreme Biodiesel Inc | 1.09 | 0.07 | 0.04 |
| Low | High | |
| Unlevered beta | 0.01 | 0.16 |
| Relevered beta | 0 | 0.07 |
| Adjusted relevered beta | 0.33 | 0.38 |
CODE.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 CODE.CN:
cost_of_equity (5.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.