CSI.CN WACC - Weighted Average Cost of Capital

The WACC of Chemesis International Inc (CSI.CN) is 7.5%.

The Cost of Equity of Chemesis International Inc (CSI.CN) is 7.55%.

The Cost of Debt of Chemesis International Inc (CSI.CN) is 5.50%.

	Range	Selected
Cost of equity	6.00% - 9.10%	7.55%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.9% - 9.1%	7.5%

WACC

CSI.CN WACC calculation

Category	Low	High

Long-term bond rate	3.6%	4.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.44	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	9.10%

Tax rate	0.10%	0.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	7.00%

After-tax WACC	5.9%	9.1%


Selected WACC	7.5%

CSI.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 CSI.CN:

cost_of_equity (7.55%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.44) + 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.