MRM.CN WACC - Weighted Average Cost of Capital
The WACC of Micromem Technologies Inc (MRM.CN) is 6.5%.
| Range | Selected | |
| Cost of equity | 4.8% - 8.9% | 6.85% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 8.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 8.9% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 8.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MRM.CN | Micromem Technologies Inc | 0.13 | 0.42 | 0.38 |
| DGLY | Digital Ally Inc | 35.71 | 1.48 | 0.05 |
| DPLS | Darkpulse Inc | 1.15 | -0.34 | -0.18 |
| IMTE | Integrated Media Technology Ltd | 1.78 | -1.19 | -0.52 |
| LPS.V | Legend Power Systems Inc | 0.02 | 0.94 | 0.93 |
| MACE | Mace Security International Inc | 1.74 | -0.24 | -0.11 |
| PNG.V | Kraken Robotics Inc | 0.03 | 1.56 | 1.53 |
| RCAT | Red Cat Holdings Inc | 0 | 1.21 | 1.21 |
| SOBR | Sobr Safe Inc | 0.47 | 1.87 | 1.39 |
| TEST.V | FluroTech Ltd | 0.27 | -0.59 | -0.49 |
| Low | High | |
| Unlevered beta | -0.01 | 0.6 |
| Relevered beta | -0.01 | 0.66 |
| Adjusted relevered beta | 0.32 | 0.77 |
MRM.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 MRM.CN:
cost_of_equity (6.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.