VIBE.CN WACC - Weighted Average Cost of Capital

The WACC of Vibe Growth Corp (VIBE.CN) is 5.4%.

The Cost of Equity of Vibe Growth Corp (VIBE.CN) is 6.00%.

The Cost of Debt of Vibe Growth Corp (VIBE.CN) is 7.10%.

	Range	Selected
Cost of equity	5.30% - 6.70%	6.00%
Tax rate	12.50% - 36.70%	24.60%
Cost of debt	7.00% - 7.20%	7.10%
WACC	6.0% - 4.8%	5.4%

WACC

VIBE.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.34

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	6.70%

Tax rate	12.50%	36.70%
Debt/Equity ratio	7.4	7.4
Cost of debt	7.00%	7.20%

After-tax WACC	6.0%	4.8%


Selected WACC	5.4%

VIBE.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 VIBE.CN:

cost_of_equity (6.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + risk_adjustments (0.75%)

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