DRUG.CN
Bright Minds Biosciences Inc
Price:  
34.96 
CAD
Volume:  
520
Canada | Professional, Scientific, and Technical Services

DRUG.CN WACC - Weighted Average Cost of Capital

The WACC of Bright Minds Biosciences Inc (DRUG.CN) is 163.4%.

The Cost of Equity of Bright Minds Biosciences Inc (DRUG.CN) is 163.5%.
The Cost of Debt of Bright Minds Biosciences Inc (DRUG.CN) is 5%.

RangeSelected
Cost of equity148.7% - 178.3%163.5%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC148.7% - 178.2%163.4%
WACC

DRUG.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta28.5528.55
Additional risk adjustments0.0%0.5%
Cost of equity148.7%178.3%
Tax rate25.9%26.5%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC148.7%178.2%
Selected WACC163.4%

DRUG.CN WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
DRUG.CNBright Minds Biosciences Inc042.142.08
LowHigh
Unlevered beta42.0842.08
Relevered beta42.1242.12
Adjusted relevered beta28.5528.55

DRUG.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 DRUG.CN:

cost_of_equity (163.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (28.55) + 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.