TAAT.CN
Taat Lifestyle & Wellness Ltd
Price:  
0.18 
CAD
Volume:  
38,055.00
Canada | Personal Products
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TAAT.CN WACC - Weighted Average Cost of Capital

The WACC of Taat Lifestyle & Wellness Ltd (TAAT.CN) is 5.2%.

The Cost of Equity of Taat Lifestyle & Wellness Ltd (TAAT.CN) is 8.10%.
The Cost of Debt of Taat Lifestyle & Wellness Ltd (TAAT.CN) is 6.10%.

Range Selected
Cost of equity 7.10% - 9.10% 8.10%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.20% - 7.00% 6.10%
WACC 4.5% - 5.9% 5.2%
WACC

TAAT.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.78 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 4.05 4.05
Cost of debt 5.20% 7.00%
After-tax WACC 4.5% 5.9%
Selected WACC 5.2%

TAAT.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 TAAT.CN:

cost_of_equity (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.78) + 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.