INQ.TO
Inscape Corp
Price:  
0.05 
CAD
Volume:  
13,720.00
Canada | Commercial Services & Supplies
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INQ.TO WACC - Weighted Average Cost of Capital

The WACC of Inscape Corp (INQ.TO) is 6.7%.

The Cost of Equity of Inscape Corp (INQ.TO) is 23.45%.
The Cost of Debt of Inscape Corp (INQ.TO) is 7.00%.

Range Selected
Cost of equity 6.30% - 40.60% 23.45%
Tax rate 5.70% - 10.40% 8.05%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.6% - 6.9% 6.7%
WACC

INQ.TO WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.54 5.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 40.60%
Tax rate 5.70% 10.40%
Debt/Equity ratio 57.23 57.23
Cost of debt 7.00% 7.00%
After-tax WACC 6.6% 6.9%
Selected WACC 6.7%

INQ.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 INQ.TO:

cost_of_equity (23.45%) = risk_free_rate (3.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.54) + 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.