GCA.X.CN
Gencan Capital Inc
Price:  
0.07 
CAD
Volume:  
9,510.00
Canada | N/A
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GCA.X.CN WACC - Weighted Average Cost of Capital

The WACC of Gencan Capital Inc (GCA.X.CN) is 73.7%.

The Cost of Equity of Gencan Capital Inc (GCA.X.CN) is 143.35%.
The Cost of Debt of Gencan Capital Inc (GCA.X.CN) is 5.00%.

Range Selected
Cost of equity 130.40% - 156.30% 143.35%
Tax rate 12.00% - 22.90% 17.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 67.4% - 80.1% 73.7%
WACC

GCA.X.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 24.94 24.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 130.40% 156.30%
Tax rate 12.00% 22.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 67.4% 80.1%
Selected WACC 73.7%

GCA.X.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 GCA.X.CN:

cost_of_equity (143.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (24.94) + 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.