SOL.CN
SOL Global Investments Corp
Price:  
0.10 
CAD
Volume:  
3,010.00
Canada | Pharmaceuticals
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SOL.CN WACC - Weighted Average Cost of Capital

The WACC of SOL Global Investments Corp (SOL.CN) is 7.6%.

The Cost of Equity of SOL Global Investments Corp (SOL.CN) is 10.70%.
The Cost of Debt of SOL Global Investments Corp (SOL.CN) is 6.75%.

Range Selected
Cost of equity 7.40% - 14.00% 10.70%
Tax rate 3.30% - 9.70% 6.50%
Cost of debt 6.50% - 7.00% 6.75%
WACC 6.6% - 8.5% 7.6%
WACC

SOL.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.83 1.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 14.00%
Tax rate 3.30% 9.70%
Debt/Equity ratio 2.47 2.47
Cost of debt 6.50% 7.00%
After-tax WACC 6.6% 8.5%
Selected WACC 7.6%

SOL.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 SOL.CN:

cost_of_equity (10.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.