EMRG.CN
Emergence Global Enterprises Inc
Price:  
0.05 
CAD
Volume:  
800.00
Canada | N/A
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EMRG.CN WACC - Weighted Average Cost of Capital

The WACC of Emergence Global Enterprises Inc (EMRG.CN) is 4.8%.

The Cost of Equity of Emergence Global Enterprises Inc (EMRG.CN) is 5.40%.
The Cost of Debt of Emergence Global Enterprises Inc (EMRG.CN) is 5.00%.

Range Selected
Cost of equity 5.10% - 5.70% 5.40%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.6% - 4.9% 4.8%
WACC

EMRG.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.41 -0.41
Additional risk adjustments 4.0% 4.5%
Cost of equity 5.10% 5.70%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.57 0.57
Cost of debt 5.00% 5.00%
After-tax WACC 4.6% 4.9%
Selected WACC 4.8%

EMRG.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 EMRG.CN:

cost_of_equity (5.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.41) + risk_adjustments (4.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.