SPR.CN WACC - Weighted Average Cost of Capital
The WACC of Sproutly Canada Inc (SPR.CN) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 1.1% - 2.1% | 1.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.3% - 7.0% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.43 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 1.1% | 2.1% |
| Debt/Equity ratio | 1.34 | 1.34 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.3% | 7.0% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SPR.CN | Sproutly Canada Inc | 1.34 | 0.44 | 0.19 |
| BSEM | Biostem Technologies Inc | 0.02 | 1.88 | 1.85 |
| CPMD | CannaPharmaRx Inc | 3.02 | -0.7 | -0.18 |
| IPCI.TO | Intellipharmaceutics International Inc | 1.06 | -0.25 | -0.12 |
| KAYS | Kaya Holdings Inc | 6.79 | 0.03 | 0 |
| KOAN | Resonate Blends Inc | 8.82 | 0.34 | 0.04 |
| MJ.CN | True Leaf Brands Inc | 8.68 | 1.01 | 0.11 |
| MMJ.CN | Matica Enterprises Inc | 0.17 | 1.15 | 0.98 |
| RSPI | RespireRx Pharmaceuticals Inc | 9.86 | -1.66 | -0.16 |
| ULUR | ULURU Inc | 0.09 | 1.62 | 1.48 |
| Low | High | |
| Unlevered beta | 0.02 | 0.14 |
| Relevered beta | 0 | 0.15 |
| Adjusted relevered beta | 0.33 | 0.43 |
SPR.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 SPR.CN:
cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.