TEMP.CN
Tempus Capital Inc
Price:  
0.05 
CAD
Volume:  
58,380.00
Canada | N/A
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TEMP.CN WACC - Weighted Average Cost of Capital

The WACC of Tempus Capital Inc (TEMP.CN) is 5.0%.

The Cost of Equity of Tempus Capital Inc (TEMP.CN) is 5.75%.
The Cost of Debt of Tempus Capital Inc (TEMP.CN) is 5.50%.

Range Selected
Cost of equity 4.70% - 6.80% 5.75%
Tax rate 13.90% - 17.50% 15.70%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.8% - 6.1% 5.0%
WACC

TEMP.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.31 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.70% 6.80%
Tax rate 13.90% 17.50%
Debt/Equity ratio 2.23 2.23
Cost of debt 4.00% 7.00%
After-tax WACC 3.8% 6.1%
Selected WACC 5.0%

TEMP.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 TEMP.CN:

cost_of_equity (5.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.31) + 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.