SLNG.CN
Slang Worldwide Inc
Price:  
0.01 
CAD
Volume:  
226,390.00
Canada | Pharmaceuticals
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SLNG.CN WACC - Weighted Average Cost of Capital

The WACC of Slang Worldwide Inc (SLNG.CN) is 8.6%.

The Cost of Equity of Slang Worldwide Inc (SLNG.CN) is 32.55%.
The Cost of Debt of Slang Worldwide Inc (SLNG.CN) is 8.45%.

Range Selected
Cost of equity 22.00% - 43.10% 32.55%
Tax rate 5.80% - 11.00% 8.40%
Cost of debt 7.00% - 9.90% 8.45%
WACC 7.2% - 10.1% 8.6%
WACC

SLNG.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 3.68 6.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 22.00% 43.10%
Tax rate 5.80% 11.00%
Debt/Equity ratio 26.06 26.06
Cost of debt 7.00% 9.90%
After-tax WACC 7.2% 10.1%
Selected WACC 8.6%

SLNG.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 SLNG.CN:

cost_of_equity (32.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.68) + 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.