IMP.TO
Intermap Technologies Corp
Price:  
2.36 
CAD
Volume:  
12,761
United States | Software

IMP.TO WACC - Weighted Average Cost of Capital

The WACC of Intermap Technologies Corp (IMP.TO) is 5.8%.

The Cost of Equity of Intermap Technologies Corp (IMP.TO) is 5.8%.
The Cost of Debt of Intermap Technologies Corp (IMP.TO) is 4.25%.

RangeSelected
Cost of equity4.8% - 6.8%5.8%
Tax rate0.0% - 0.3%0.15%
Cost of debt4.0% - 4.5%4.25%
WACC4.8% - 6.8%5.8%
WACC

IMP.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.330.44
Additional risk adjustments0.0%0.5%
Cost of equity4.8%6.8%
Tax rate0.0%0.3%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC4.8%6.8%
Selected WACC5.8%

IMP.TO WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.150.49
Relevered beta00.16
Adjusted relevered beta0.330.44

IMP.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 IMP.TO:

cost_of_equity (5.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.