RVX.TO WACC - Weighted Average Cost of Capital

The WACC of Resverlogix Corp (RVX.TO) is 9.1%.

The Cost of Equity of Resverlogix Corp (RVX.TO) is 19.55%.

The Cost of Debt of Resverlogix Corp (RVX.TO) is 5.00%.

	Range	Selected
Cost of equity	13.80% - 25.30%	19.55%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.5% - 10.8%	9.1%

WACC

RVX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.09	3.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	25.30%

Tax rate	0.10%	0.30%
Debt/Equity ratio	2.51	2.51
Cost of debt	5.00%	5.00%

After-tax WACC	7.5%	10.8%


Selected WACC	9.1%

RVX.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 RVX.TO:

cost_of_equity (19.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.09) + 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.