GLXY.TO
Galaxy Digital Holdings Ltd
Price:  
29.82 
CAD
Volume:  
1,053,936
United States | Capital Markets

GLXY.TO WACC - Weighted Average Cost of Capital

The WACC of Galaxy Digital Holdings Ltd (GLXY.TO) is 6.3%.

The Cost of Equity of Galaxy Digital Holdings Ltd (GLXY.TO) is 8.1%.
The Cost of Debt of Galaxy Digital Holdings Ltd (GLXY.TO) is 5%.

RangeSelected
Cost of equity6.6% - 9.6%8.1%
Tax rate8.9% - 13.9%11.4%
Cost of debt5.0% - 5.0%5%
WACC5.6% - 6.9%6.3%
WACC

GLXY.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.680.89
Additional risk adjustments0.0%0.5%
Cost of equity6.6%9.6%
Tax rate8.9%13.9%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.6%6.9%
Selected WACC6.3%

GLXY.TO'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 GLXY.TO:

cost_of_equity (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.