PLUS.CN
Plus Products Inc
Price:  
0.44 
CAD
Volume:  
9,880.00
United States | Pharmaceuticals
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PLUS.CN WACC - Weighted Average Cost of Capital

The WACC of Plus Products Inc (PLUS.CN) is 7.5%.

The Cost of Equity of Plus Products Inc (PLUS.CN) is 8.25%.
The Cost of Debt of Plus Products Inc (PLUS.CN) is 7.00%.

Range Selected
Cost of equity 6.70% - 9.80% 8.25%
Tax rate -% - 1.00% 0.50%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.9% - 8.2% 7.5%
WACC

PLUS.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.71 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.80%
Tax rate -% 1.00%
Debt/Equity ratio 1.31 1.31
Cost of debt 7.00% 7.00%
After-tax WACC 6.9% 8.2%
Selected WACC 7.5%

PLUS.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 PLUS.CN:

cost_of_equity (8.25%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.71) + 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.