PMN.TO WACC - Weighted Average Cost of Capital
The WACC of ProMIS Neurosciences Inc (PMN.TO) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.6% | 7.85% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.7% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.58 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.6% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.7% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PMN.TO | ProMIS Neurosciences Inc | 1.02 | 0.71 | 0.4 |
| ADTX | ADiTx Therapeutics Inc | 0.03 | 0.57 | 0.56 |
| BCT.V | Briacell Therapeutics Corp | 0 | 1.43 | 1.43 |
| BIXT | Bioxytran Inc | 0.17 | -1.34 | -1.19 |
| BTI.V | biOasis Technologies Inc | 4.79 | 0 | 0 |
| HEM.V | Hemostemix Inc | 0.29 | 0.25 | 0.21 |
| KNE.V | Kane Biotech Inc | 1 | 0.14 | 0.08 |
| MHTX | Manhattan Scientifics Inc | 0.11 | 0.86 | 0.8 |
| MLND | Millendo Therapeutics Inc | 0.01 | 0.45 | 0.44 |
| PSTV | Plus Therapeutics Inc | 0.46 | 0.95 | 0.71 |
| TELO.V | Telo Genomics Corp | 0 | 0.22 | 0.22 |
| Low | High | |
| Unlevered beta | 0.22 | 0.44 |
| Relevered beta | 0.37 | 0.85 |
| Adjusted relevered beta | 0.58 | 0.9 |
PMN.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 PMN.TO:
cost_of_equity (7.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.