VOTI.V WACC - Weighted Average Cost of Capital
The WACC of VOTI Detection Inc (VOTI.V) is 9.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 13.4% | 9.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 17.7% | 12.35% |
| WACC | 5.4% - 13.1% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.4 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 13.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 3.37 | 3.37 |
| Cost of debt | 7.0% | 17.7% |
| After-tax WACC | 5.4% | 13.1% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VOTI.V | VOTI Detection Inc | 3.37 | 1.6 | 0.46 |
| BNSO | Bonso Electronics International Inc | 0.23 | 0.55 | 0.48 |
| CRGS | CurAegis Technologies Inc | 1843.54 | 1.06 | 0 |
| ISNS | Image Sensing Systems Inc | 0.03 | 1.11 | 1.08 |
| LCTC | Lifeloc Technologies Inc | 0.22 | 0.29 | 0.25 |
| MACE | Mace Security International Inc | 1.74 | -0.24 | -0.11 |
| SMIT | Schmitt Industries Inc | 40.78 | 0.98 | 0.03 |
| TEST.V | FluroTech Ltd | 0.27 | -0.59 | -0.49 |
| TNLX | Trans Lux Corp | 0.91 | -0.6 | -0.36 |
| Low | High | |
| Unlevered beta | 0.01 | 0.21 |
| Relevered beta | 0.1 | 1.4 |
| Adjusted relevered beta | 0.4 | 1.27 |
VOTI.V'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 VOTI.V:
cost_of_equity (9.90%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.4) + 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.