FUND.V
Katipult Technology Corp
Price:  
0.01 
CAD
Volume:  
11,000
Canada | Software

FUND.V WACC - Weighted Average Cost of Capital

The WACC of Katipult Technology Corp (FUND.V) is 4.5%.

The Cost of Equity of Katipult Technology Corp (FUND.V) is 8%.
The Cost of Debt of Katipult Technology Corp (FUND.V) is 5.5%.

RangeSelected
Cost of equity3.4% - 12.6%8%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 7.0%5.5%
WACC3.0% - 6.0%4.5%
WACC

FUND.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta-0.970.54
Additional risk adjustments4.5%5.0%
Cost of equity3.4%12.6%
Tax rate26.2%27.0%
Debt/Equity ratio
7.487.48
Cost of debt4.0%7.0%
After-tax WACC3.0%6.0%
Selected WACC4.5%

FUND.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 FUND.V:

cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (-0.97) + risk_adjustments (4.75%)

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