SWIM.CN
SWMBRD Sports Inc.
Price:  
0.01 
CAD
Volume:  
40,600.00
Canada | N/A
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SWIM.CN WACC - Weighted Average Cost of Capital

The WACC of SWMBRD Sports Inc. (SWIM.CN) is 2.6%.

The Cost of Equity of SWMBRD Sports Inc. (SWIM.CN) is 1.55%.
The Cost of Debt of SWMBRD Sports Inc. (SWIM.CN) is 5.00%.

Range Selected
Cost of equity 0.60% - 2.50% 1.55%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.1% - 2.1% 2.6%
WACC

SWIM.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -2.88 -2.88
Additional risk adjustments 14.0% 14.5%
Cost of equity 0.60% 2.50%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 3.1% 2.1%
Selected WACC 2.6%

SWIM.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 SWIM.CN:

cost_of_equity (1.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-2.88) + risk_adjustments (14.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.