TRIL.TO
Trillium Therapeutics Inc
Price:  
23.33 
CAD
Volume:  
41,470.00
Canada | Biotechnology
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

TRIL.TO WACC - Weighted Average Cost of Capital

The WACC of Trillium Therapeutics Inc (TRIL.TO) is 9.6%.

The Cost of Equity of Trillium Therapeutics Inc (TRIL.TO) is 14.25%.
The Cost of Debt of Trillium Therapeutics Inc (TRIL.TO) is 5.00%.

Range Selected
Cost of equity 12.10% - 16.40% 14.25%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.6% - 10.7% 9.6%
WACC

TRIL.TO WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.85 2.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.10% 16.40%
Tax rate 0.10% 0.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 8.6% 10.7%
Selected WACC 9.6%

TRIL.TO'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 TRIL.TO:

cost_of_equity (14.25%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.85) + 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.