VTX.V
Vertex Resource Group Ltd
Price:  
0.28 
CAD
Volume:  
13,000.00
Canada | Commercial Services & Supplies
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VTX.V WACC - Weighted Average Cost of Capital

The WACC of Vertex Resource Group Ltd (VTX.V) is 8.2%.

The Cost of Equity of Vertex Resource Group Ltd (VTX.V) is 11.85%.
The Cost of Debt of Vertex Resource Group Ltd (VTX.V) is 9.30%.

Range Selected
Cost of equity 8.60% - 15.10% 11.85%
Tax rate 16.60% - 23.60% 20.10%
Cost of debt 6.20% - 12.40% 9.30%
WACC 5.8% - 10.6% 8.2%
WACC

VTX.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.92 1.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 15.10%
Tax rate 16.60% 23.60%
Debt/Equity ratio 3.94 3.94
Cost of debt 6.20% 12.40%
After-tax WACC 5.8% 10.6%
Selected WACC 8.2%

VTX.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 VTX.V:

cost_of_equity (11.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.