ISFT.CN WACC - Weighted Average Cost of Capital
The WACC of ICEsoft Technologies Canada Corp (ISFT.CN) is 5.1%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.2% | 5.5% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.3% - 5.9% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.3% | 5.9% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ISFT.CN | ICEsoft Technologies Canada Corp | 0.4 | -5.56 | -4.29 |
| ARGQ | Argentum 47 Inc | 23.58 | -0.04 | 0 |
| ASFT | AppSoft Technologies Inc | 0.39 | -0.16 | -0.12 |
| GCAN | Greater Cannabis Company Inc | 1.48 | -0.77 | -0.37 |
| HAON | Halitron Inc | 156.96 | 0 | 0 |
| IMTV | Imagine All The People Inc | 91.3 | 0 | 0 |
| RGMP | Regnum Corp | 11.52 | 0.71 | 0.08 |
| USAQ | USA Equities Corp | 0.62 | 1.62 | 1.12 |
| Low | High | |
| Unlevered beta | -0.03 | 0 |
| Relevered beta | 0 | 0 |
| Adjusted relevered beta | 0.33 | 0.33 |
ISFT.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 ISFT.CN:
cost_of_equity (5.50%) = 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.