LXG.V
Lexagene Holdings Inc
Price:  
0.11 
CAD
Volume:  
1,600.00
United States | Health Care Equipment & Supplies
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LXG.V WACC - Weighted Average Cost of Capital

The WACC of Lexagene Holdings Inc (LXG.V) is 9.4%.

The Cost of Equity of Lexagene Holdings Inc (LXG.V) is 10.00%.
The Cost of Debt of Lexagene Holdings Inc (LXG.V) is 5.00%.

Range Selected
Cost of equity 8.00% - 12.00% 10.00%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 11.2% 9.4%
WACC

LXG.V WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.5% 6.5%
Adjusted beta 0.7 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 12.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.11 0.11
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 11.2%
Selected WACC 9.4%

LXG.V'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 LXG.V:

cost_of_equity (10.00%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.7) + 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.