FTRP.CN WACC - Weighted Average Cost of Capital
The WACC of Field Trip Health Ltd (FTRP.CN) is 7.5%.
| Range | Selected | |
| Cost of equity | 9.9% - 12.8% | 11.35% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.2% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.38 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 12.8% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.2% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FTRP.CN | Field Trip Health Ltd | 0.07 | 1.01 | 0.96 |
| ABVC | American Brivision (Holding) Corp | 0.1 | 0.92 | 0.86 |
| BGLC | BioNexus Gene Lab Corp | 1.14 | 0.83 | 0.45 |
| CISO | Cerberus Cyber Sentinel Corp | 0.28 | 1.52 | 1.26 |
| FARM.V | Deveron Corp | 5.37 | 1.41 | 0.28 |
| FUST | Fuse Group Holding Inc | 0.03 | 0.16 | 0.15 |
| RAMM.CN | Ramm Pharma Corp | 0.16 | 2.22 | 1.99 |
| RAYT | Rayont Inc | 1.48 | -1221.56 | -584.39 |
| SMKG | Smart Card Marketing Systems Inc | 3.38 | 712.22 | 204.42 |
| TAAL.CN | Taal Distributed Information Technologies Inc | 0.33 | 0.84 | 0.68 |
| VIVK | Vivakor Inc | 2.26 | 0.48 | 0.18 |
| Low | High | |
| Unlevered beta | 0.45 | 0.86 |
| Relevered beta | 1.57 | 1.7 |
| Adjusted relevered beta | 1.38 | 1.47 |
FTRP.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 FTRP.CN:
cost_of_equity (11.35%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.38) + 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.