LXGTF
Lexington Biosciences Holdings Corp
Price:  
USD
Volume:  
1,670
Canada | Manufacturing

LXGTF WACC - Weighted Average Cost of Capital

The WACC of Lexington Biosciences Holdings Corp (LXGTF) is 4.9%.

The Cost of Equity of Lexington Biosciences Holdings Corp (LXGTF) is 6.05%.
The Cost of Debt of Lexington Biosciences Holdings Corp (LXGTF) is 5%.

RangeSelected
Cost of equity5.4% - 6.7%6.05%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 5.2%4.9%
WACC

LXGTF WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.330.33
Additional risk adjustments0.0%0.5%
Cost of equity5.4%6.7%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.5%5.2%
Selected WACC4.9%

LXGTF WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
LXGTFLexington Biosciences Holdings Corp1.0310.57
BLFR BlueFire Equipment Corp 0.38 1.39 1.09
CIRX CirTran Corp 98.02 -1.89 -0.03
FLRE Flameret Inc 11.22 0.04 0
LowHigh
Unlevered beta0.120.46
Relevered beta00
Adjusted relevered beta0.330.33

LXGTF'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 LXGTF:

cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.