IP.CN
ImagineAR Inc
Price:  
0.04 
CAD
Volume:  
46,000.00
Canada | N/A
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IP.CN WACC - Weighted Average Cost of Capital

The WACC of ImagineAR Inc (IP.CN) is 4.5%.

The Cost of Equity of ImagineAR Inc (IP.CN) is 5.95%.
The Cost of Debt of ImagineAR Inc (IP.CN) is 4.25%.

Range Selected
Cost of equity 4.90% - 7.00% 5.95%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.9% - 5.1% 4.5%
WACC

IP.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.33 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.00%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 4.00% 4.50%
After-tax WACC 3.9% 5.1%
Selected WACC 4.5%

IP.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 IP.CN:

cost_of_equity (5.95%) = 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.