MAGT.TO
Magnet Forensics Inc
Price:  
44.24 
CAD
Volume:  
19,185.00
Canada | Software
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MAGT.TO WACC - Weighted Average Cost of Capital

The WACC of Magnet Forensics Inc (MAGT.TO) is 8.5%.

The Cost of Equity of Magnet Forensics Inc (MAGT.TO) is 8.50%.
The Cost of Debt of Magnet Forensics Inc (MAGT.TO) is 4.25%.

Range Selected
Cost of equity 7.40% - 9.60% 8.50%
Tax rate 24.20% - 29.70% 26.95%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.4% - 9.6% 8.5%
WACC

MAGT.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.84 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.60%
Tax rate 24.20% 29.70%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 7.4% 9.6%
Selected WACC 8.5%

MAGT.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 MAGT.TO:

cost_of_equity (8.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.84) + 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.