VPI.V WACC - Weighted Average Cost of Capital
The WACC of Vitality Products Inc (VPI.V) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.4% | 6.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.5% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.5% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VPI.V | Vitality Products Inc | 1 | -0.54 | -0.31 |
| EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
| FITX | Creative Edge Nutrition Inc | 29.9 | 0.02 | 0 |
| GBLP | Global Pharmatech Inc | 0.03 | 0.17 | 0.17 |
| GENX.V | GenixPharmaceucticals Corporation | 0.51 | 0.22 | 0.16 |
| JOEY | Joey New York Inc | 106.89 | 0 | 0 |
| LQWC | Lifequest World Corp | 3.14 | -0.56 | -0.17 |
| NUUU | Rejuvel Bio-Sciences Inc | 307 | 0 | 0 |
| NUVM | NuVim Inc | 0.55 | -0.34 | -0.24 |
| NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
| SXTC | China SXT Pharmaceuticals Inc | 0.01 | 0.46 | 0.45 |
| Low | High | |
| Unlevered beta | 0 | 0.02 |
| Relevered beta | 0 | 0.13 |
| Adjusted relevered beta | 0.33 | 0.42 |
VPI.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 VPI.V:
cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.