ROMJ.V WACC - Weighted Average Cost of Capital
The WACC of Rubicon Organics Inc (ROMJ.V) is 6.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.0% | 7.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.5% - 10.3% | 7.4% |
| WACC | 5.2% - 8.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 4.5% | 10.3% |
| After-tax WACC | 5.2% | 8.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ROMJ.V | Rubicon Organics Inc | 0.3 | -1.41 | -1.16 |
| ALID | Allied Corp | 4.31 | -0.24 | -0.06 |
| BAMM.CN | Body and Mind Inc | 3.99 | 0.18 | 0.05 |
| EBM.V | Eastwood Bio-Medical Canada Inc | 0 | -1.44 | -1.44 |
| EYEN | Eyenovia Inc | 0.33 | 1.72 | 1.38 |
| FONE.CN | Flower One Holdings Inc | 52.93 | 1.84 | 0.05 |
| NGW.CN | Next Green Wave Holdings Inc | 0.05 | 1.14 | 1.1 |
| PCSA | Processa Pharmaceuticals Inc | 0 | 0.16 | 0.16 |
| SCYX | SCYNEXIS Inc | 0.48 | 1.14 | 0.85 |
| XPHY.CN | Xphyto Therapeutics Corp | 0.09 | 1 | 0.94 |
| Low | High | |
| Unlevered beta | 0.05 | 0.44 |
| Relevered beta | 0.06 | 0.54 |
| Adjusted relevered beta | 0.37 | 0.69 |
ROMJ.V'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 ROMJ.V:
cost_of_equity (7.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.