The WACC of Sixth Wave Innovations Inc (SIXW.CN) is 5.5%.
Range | Selected | |
Cost of equity | 11.9% - 30.8% | 21.35% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.5% - 6.4% | 5.5% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 1.71 | 4.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.9% | 30.8% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 9.01 | 9.01 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.5% | 6.4% |
Selected WACC | 5.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SIXW.CN | Sixth Wave Innovations Inc | 9.01 | -3.02 | -0.4 |
AGD.V | Antioquia Gold Inc (Pre-Reincorporation) | 28.7 | 0.29 | 0.01 |
BILZ.CN | Ignite International Brands Ltd | 0.15 | 0.96 | 0.86 |
GPY.V | Golden Predator Mining Corp | 0 | 0.75 | 0.74 |
MFST | Medifirst Solutions Inc | 265.56 | 0.9 | 0 |
MVMD.CN | Mountain Valley MD Holdings Inc | 0.84 | -0.84 | -0.52 |
OCG.V | Outcrop Gold Corp | 0 | 1.6 | 1.6 |
RML.V | Rusoro Mining Ltd | 0.14 | 1.07 | 0.98 |
RPX.V | Red Pine Exploration Inc | 0 | 1.49 | 1.49 |
SMPR | Cambrian Minerals Group Inc | 0.2 | -0.04 | -0.03 |
WMG.V | Western Magnesium Corp | 0.01 | 0.45 | 0.44 |
Low | High | |
Unlevered beta | 0.01 | 0.74 |
Relevered beta | 2.06 | 6.03 |
Adjusted relevered beta | 1.71 | 4.37 |
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.