TUGA.CN
Tuga Innovations Inc
Price:  
0.01 
CAD
Volume:  
219,740.00
Canada | N/A
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TUGA.CN WACC - Weighted Average Cost of Capital

The WACC of Tuga Innovations Inc (TUGA.CN) is 2.8%.

The Cost of Equity of Tuga Innovations Inc (TUGA.CN) is 1.85%.
The Cost of Debt of Tuga Innovations Inc (TUGA.CN) is 5.00%.

Range Selected
Cost of equity 0.50% - 3.20% 1.85%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.4% - 2.1% 2.8%
WACC

TUGA.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -3.62 -3.62
Additional risk adjustments 18.5% 19.0%
Cost of equity 0.50% 3.20%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 3.4% 2.1%
Selected WACC 2.8%

TUGA.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 TUGA.CN:

cost_of_equity (1.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-3.62) + risk_adjustments (18.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.