COIN.V
Coin Hodl Inc
Price:  
0.15 
CAD
Volume:  
480,820
Canada | Capital Markets

COIN.V WACC - Weighted Average Cost of Capital

The WACC of Coin Hodl Inc (COIN.V) is 6.4%.

The Cost of Equity of Coin Hodl Inc (COIN.V) is 6.4%.
The Cost of Debt of Coin Hodl Inc (COIN.V) is 5%.

RangeSelected
Cost of equity5.7% - 7.1%6.4%
Tax rate2.6% - 4.6%3.6%
Cost of debt5.0% - 5.0%5%
WACC5.7% - 7.1%6.4%
WACC

COIN.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.350.37
Additional risk adjustments0.0%0.5%
Cost of equity5.7%7.1%
Tax rate2.6%4.6%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC5.7%7.1%
Selected WACC6.4%

COIN.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 COIN.V:

cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.