SIXW.CN
Sixth Wave Innovations Inc
Price:  
0.01 
CAD
Volume:  
85,110
Canada | Metals & Mining

SIXW.CN WACC - Weighted Average Cost of Capital

The WACC of Sixth Wave Innovations Inc (SIXW.CN) is 5.5%.

The Cost of Equity of Sixth Wave Innovations Inc (SIXW.CN) is 21.35%.
The Cost of Debt of Sixth Wave Innovations Inc (SIXW.CN) is 5%.

RangeSelected
Cost of equity11.9% - 30.8%21.35%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 6.4%5.5%
WACC

SIXW.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta1.714.37
Additional risk adjustments0.0%0.5%
Cost of equity11.9%30.8%
Tax rate25.9%26.5%
Debt/Equity ratio
9.019.01
Cost of debt5.0%5.0%
After-tax WACC4.5%6.4%
Selected WACC5.5%

SIXW.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 SIXW.CN:

cost_of_equity (21.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.71) + 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.