ONCI WACC - Weighted Average Cost of Capital
The WACC of On4 Communications Inc (ONCI) is 4.0%.
| Range | Selected | |
| Cost of equity | 8.5% - 48.9% | 28.7% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 4.3% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.02 | 7.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 48.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 65.44 | 65.44 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 4.3% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ONCI | On4 Communications Inc | 65.44 | 29.32 | 0.6 |
| AMPD.CN | Ampd Ventures Inc | 4.32 | 0.72 | 0.17 |
| FFLO | Free Flow Inc | 0.1 | -0.69 | -0.65 |
| FNAM | Evolutionary Genomics Inc | 2810.62 | -0.73 | 0 |
| ITOX | Iiot-Oxys Inc | 1 | 0.87 | 0.5 |
| MDEX | Madison Technologies Inc | 54.33 | 1.43 | 0.04 |
| RJDG | RJD Green Inc | 0.17 | 0.77 | 0.68 |
| SYNJ | Day Tradexchange Inc | 1334.3 | -1.32 | 0 |
| TMED.CN | EGF Theramed Health Corp | 1.33 | 0.49 | 0.25 |
| UNEX | Unex Holdings Inc | 0 | 1.09 | 1.09 |
| VITX | Vitana-X Inc | 3.49 | -0.96 | -0.27 |
| Low | High | |
| Unlevered beta | 0.04 | 0.25 |
| Relevered beta | 1.03 | 11.24 |
| Adjusted relevered beta | 1.02 | 7.86 |
ONCI'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 ONCI:
cost_of_equity (28.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.