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.