EVE.V
Eve & Co Inc
Price:  
0.10 
CAD
Volume:  
28,210.00
Canada | Personal Products
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EVE.V WACC - Weighted Average Cost of Capital

The WACC of Eve & Co Inc (EVE.V) is 4.4%.

The Cost of Equity of Eve & Co Inc (EVE.V) is 6.25%.
The Cost of Debt of Eve & Co Inc (EVE.V) is 5.50%.

Range Selected
Cost of equity 4.80% - 7.70% 6.25%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.2% - 5.5% 4.4%
WACC

EVE.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.34 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.80% 7.70%
Tax rate 27.00% 27.00%
Debt/Equity ratio 5.29 5.29
Cost of debt 4.00% 7.00%
After-tax WACC 3.2% 5.5%
Selected WACC 4.4%

EVE.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 EVE.V:

cost_of_equity (6.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.34) + 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.