COIN.V
Coin Hodl Inc
Price:  
0.15 
CAD
Volume:  
480,820.00
Canada | Capital Markets
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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 6.40%.
The Cost of Debt of Coin Hodl Inc (COIN.V) is 5.00%.

Range Selected
Cost of equity 5.70% - 7.10% 6.40%
Tax rate 2.60% - 4.60% 3.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.7% - 7.1% 6.4%
WACC

COIN.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.35 0.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.10%
Tax rate 2.60% 4.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 5.7% 7.1%
Selected WACC 6.4%

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.