The WACC of Pushfor Investments Inc (PUSH.CN) is 8.1%.
Range | Selected | |
Cost of equity | 7.6% - 17.2% | 12.4% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.7% - 10.4% | 8.1% |
Category | Low | High |
Long-term bond rate | 3.6% | 4.1% |
Equity market risk premium | 5.5% | 6.5% |
Adjusted beta | 0.74 | 1.94 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.6% | 17.2% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.7% | 10.4% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PUSH.CN | Pushfor Investments Inc | 0.09 | 1.32 | 1.23 |
FRFR | Fritzy Tech Inc | 61.75 | -61.78 | -1.33 |
HIH.V | Hylands International Holdings Inc | 0.03 | 1.64 | 1.61 |
LBI.V | Lions Bay Capital Inc | 0.1 | -1.18 | -1.1 |
MILC | Millennium Investment & Acquisition Company Inc | 0.91 | 0.32 | 0.19 |
MRBL.CN | Marble Financial Inc | 0.64 | -0.56 | -0.38 |
NIMU | Non-Invasive Monitoring Systems Inc | 0.4 | 4.34 | 3.34 |
PDV.TO | Prime Dividend Corp | 0 | 1.26 | 1.26 |
PPK.V | Prospect Park Capital Corp | 0.02 | 2 | 1.97 |
SUTI | Sutimco International Inc | 696.02 | 95.38 | 0.19 |
XTRM | Extreme Biodiesel Inc | 0.93 | 151.48 | 90.12 |
Low | High | |
Unlevered beta | 0.19 | 1.26 |
Relevered beta | 0.61 | 2.4 |
Adjusted relevered beta | 0.74 | 1.94 |
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 PUSH.CN:
cost_of_equity (12.40%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.74) + 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.