GABY.CN
Gaby Inc
Price:  
0.01 
CAD
Volume:  
5,280.00
Canada | N/A
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GABY.CN WACC - Weighted Average Cost of Capital

The WACC of Gaby Inc (GABY.CN) is 56.1%.

The Cost of Equity of Gaby Inc (GABY.CN) is 24.75%.
The Cost of Debt of Gaby Inc (GABY.CN) is 62.20%.

Range Selected
Cost of equity 21.30% - 28.20% 24.75%
Tax rate 2.10% - 3.80% 2.95%
Cost of debt 7.00% - 117.40% 62.20%
WACC 8.4% - 103.8% 56.1%
WACC

GABY.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 3.57 3.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 21.30% 28.20%
Tax rate 2.10% 3.80%
Debt/Equity ratio 8.3 8.3
Cost of debt 7.00% 117.40%
After-tax WACC 8.4% 103.8%
Selected WACC 56.1%

GABY.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 GABY.CN:

cost_of_equity (24.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.57) + 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.