EGTI.CN
EYEFI Group Technologies Inc
Price:  
0.15 
CAD
Volume:  
2,000.00
Australia | N/A
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EGTI.CN WACC - Weighted Average Cost of Capital

The WACC of EYEFI Group Technologies Inc (EGTI.CN) is 6.2%.

The Cost of Equity of EYEFI Group Technologies Inc (EGTI.CN) is 6.30%.
The Cost of Debt of EYEFI Group Technologies Inc (EGTI.CN) is 5.00%.

Range Selected
Cost of equity 5.00% - 7.60% 6.30%
Tax rate 0.40% - 35.80% 18.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 7.3% 6.2%
WACC

EGTI.CN WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 0.25 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 7.60%
Tax rate 0.40% 35.80%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 7.3%
Selected WACC 6.2%

EGTI.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 EGTI.CN:

cost_of_equity (6.30%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.25) + 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.