TRUE.CN
Treatment.com International Inc
Price:  
0.39 
CAD
Volume:  
28,000.00
United States | N/A
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TRUE.CN WACC - Weighted Average Cost of Capital

The WACC of Treatment.com International Inc (TRUE.CN) is 8.6%.

The Cost of Equity of Treatment.com International Inc (TRUE.CN) is 8.75%.
The Cost of Debt of Treatment.com International Inc (TRUE.CN) is 5.00%.

Range Selected
Cost of equity 7.80% - 9.70% 8.75%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.5% 8.6%
WACC

TRUE.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.9 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 9.70%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.5%
Selected WACC 8.6%

TRUE.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 TRUE.CN:

cost_of_equity (8.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.9) + 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.