The WACC of Vaxil Bio Ltd (VXL.V) is 5.5%.
Range | Selected | |
Cost of equity | 5.5% - 9.3% | 7.4% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.6% - 6.5% | 5.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.33 | 0.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.5% | 9.3% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.6% | 6.5% |
Selected WACC | 5.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VXL.V | Vaxil Bio Ltd | 0.9 | -0.05 | -0.03 |
APC.V | Advanced Proteome Therapeutics Corporation | 0.46 | 1.95 | 1.46 |
BCT.V | Briacell Therapeutics Corp | 0 | 1.43 | 1.43 |
BIXT | Bioxytran Inc | 0.14 | -1.7 | -1.55 |
HEM.V | Hemostemix Inc | 0.29 | 0.22 | 0.18 |
IMMB | Immunotech Laboratories Inc | 7.04 | 0 | 0 |
KNE.V | Kane Biotech Inc | 0.22 | -0.25 | -0.21 |
NOHO | Dragon Life Science Holdings Group Inc | 97.57 | 0 | 0 |
PAS.V | Pascal Biosciences Inc | 0.25 | 1.57 | 1.33 |
TXTM | Protext Mobility Inc | 1.05 | 1.02 | 0.57 |
Low | High | |
Unlevered beta | 0 | 0.34 |
Relevered beta | 0 | 0.58 |
Adjusted relevered beta | 0.33 | 0.72 |
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 VXL.V:
cost_of_equity (7.40%) = 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.