INNO.CN
Innocan Pharma Corp
Price:  
0.18 
CAD
Volume:  
6,020.00
Israel | N/A
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INNO.CN WACC - Weighted Average Cost of Capital

The WACC of Innocan Pharma Corp (INNO.CN) is 7.1%.

The Cost of Equity of Innocan Pharma Corp (INNO.CN) is 7.15%.
The Cost of Debt of Innocan Pharma Corp (INNO.CN) is 5.00%.

Range Selected
Cost of equity 5.60% - 8.70% 7.15%
Tax rate -% - 2.10% 1.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 8.7% 7.1%
WACC

INNO.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.70%
Tax rate -% 2.10%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 8.7%
Selected WACC 7.1%

INNO.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 INNO.CN:

cost_of_equity (7.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.