SIRE.CN
Sire Bioscience Inc
Price:  
0.37 
CAD
Volume:  
234,020.00
Canada | N/A
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SIRE.CN WACC - Weighted Average Cost of Capital

The WACC of Sire Bioscience Inc (SIRE.CN) is 6.8%.

The Cost of Equity of Sire Bioscience Inc (SIRE.CN) is 7.10%.
The Cost of Debt of Sire Bioscience Inc (SIRE.CN) is 5.00%.

Range Selected
Cost of equity 5.30% - 8.90% 7.10%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.2% - 8.5% 6.8%
WACC

SIRE.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.31 0.71
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.30% 8.90%
Tax rate 26.50% 26.50%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.00% 5.00%
After-tax WACC 5.2% 8.5%
Selected WACC 6.8%

SIRE.CN'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 SIRE.CN:

cost_of_equity (7.10%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.31) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.