VPH.CN WACC - Weighted Average Cost of Capital
The WACC of Valeo Pharma Inc (VPH.CN) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.1% | 8.45% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.2% - 9.2% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.74 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.1% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.2% | 9.2% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VPH.CN | Valeo Pharma Inc | 0.2 | 0.98 | 0.86 |
| GFP.V | GreenFirst Forest Products Inc | 0.01 | 0.59 | 0.58 |
| ISH.CN | Inner Spirit Holdings Ltd | 0.24 | 1.03 | 0.88 |
| ODII | Odyssey Semiconductor Technologies Inc | 6.43 | -0.14 | -0.03 |
| PBIT.CN | POSaBIT Systems Corp | 0.43 | 1.56 | 1.19 |
| SHRC.CN | Sharc International Systems Inc | 0.15 | 1.42 | 1.28 |
| TRUL | Trulite Inc | 0.83 | 1051.04 | 652.84 |
| USMJ | North American Cannabis Holdings Inc | 187.7 | 0 | 0 |
| VDKB | Vodka Brands Corp | 0 | -1.32 | -1.31 |
| ZAIR.CN | Zinc8 Energy Solutions Inc | 0.17 | 3.41 | 3.02 |
| Low | High | |
| Unlevered beta | 0.75 | 1 |
| Relevered beta | 0.61 | 0.99 |
| Adjusted relevered beta | 0.74 | 0.99 |
VPH.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 VPH.CN:
cost_of_equity (8.45%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.74) + 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.