OPS.TO
Opsens Inc
Price:  
2.90 
CAD
Volume:  
42,050.00
Canada | Health Care Equipment & Supplies
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OPS.TO WACC - Weighted Average Cost of Capital

The WACC of Opsens Inc (OPS.TO) is 6.9%.

The Cost of Equity of Opsens Inc (OPS.TO) is 6.90%.
The Cost of Debt of Opsens Inc (OPS.TO) is 6.85%.

Range Selected
Cost of equity 5.50% - 8.30% 6.90%
Tax rate 0.20% - 0.90% 0.55%
Cost of debt 6.70% - 7.00% 6.85%
WACC 5.6% - 8.3% 6.9%
WACC

OPS.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.46 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.30%
Tax rate 0.20% 0.90%
Debt/Equity ratio 0.03 0.03
Cost of debt 6.70% 7.00%
After-tax WACC 5.6% 8.3%
Selected WACC 6.9%

OPS.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 OPS.TO:

cost_of_equity (6.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.