OAKY.CN
Oakley Ventures Inc
Price:  
0.70 
CAD
Volume:  
6,420.00
Canada | N/A
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OAKY.CN WACC - Weighted Average Cost of Capital

The WACC of Oakley Ventures Inc (OAKY.CN) is 8.6%.

The Cost of Equity of Oakley Ventures Inc (OAKY.CN) is 8.60%.
The Cost of Debt of Oakley Ventures Inc (OAKY.CN) is 5.00%.

Range Selected
Cost of equity 7.40% - 9.80% 8.60%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.8% 8.6%
WACC

OAKY.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.86 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.80%
Tax rate 26.50% 26.50%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.8%
Selected WACC 8.6%

OAKY.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 OAKY.CN:

cost_of_equity (8.60%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.86) + 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.