QETH.U.TO
Ether Fund
Price:  
28.55 
USD
Volume:  
1,401.00
Canada | N/A
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QETH.U.TO WACC - Weighted Average Cost of Capital

The WACC of Ether Fund (QETH.U.TO) is 7.6%.

The Cost of Equity of Ether Fund (QETH.U.TO) is 11.45%.
The Cost of Debt of Ether Fund (QETH.U.TO) is 5.00%.

Range Selected
Cost of equity 10.20% - 12.70% 11.45%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 8.2% 7.6%
WACC

QETH.U.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.52 1.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 12.70%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 8.2%
Selected WACC 7.6%

QETH.U.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 QETH.U.TO:

cost_of_equity (11.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.10%) * adjusted_beta (1.52) + 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.