VYC.H.V WACC - Weighted Average Cost of Capital
The WACC of Vanity Capital Inc (VYC.H.V) is 7.4%.
| Range | Selected | |
| Cost of equity | 8.4% - 13.8% | 11.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 8.7% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.89 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 13.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 8.7% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VYC.H.V | Vanity Capital Inc | 1.14 | 0.36 | 0.2 |
| ADG.V | Arcus Development Group Inc | 0.04 | 1.96 | 1.91 |
| ALM.V | Alliance Mining Corp | 0.05 | 1.74 | 1.68 |
| DEEP.CN | DeepRock Minerals Inc | 0.02 | 1.1 | 1.09 |
| EI.CN | Eurogas International Inc | 123.89 | 2.06 | 0.02 |
| MFX.V | Minfocus Exploration Corp | 0.01 | 1.96 | 1.94 |
| MY.X.CN | Montego Resources Inc | 1.39 | 1.13 | 0.56 |
| NED.V | New Destiny Mining Corp | 0.02 | -1.45 | -1.43 |
| Low | High | |
| Unlevered beta | 0.49 | 1.21 |
| Relevered beta | 0.84 | 1.7 |
| Adjusted relevered beta | 0.89 | 1.47 |
VYC.H.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 VYC.H.V:
cost_of_equity (11.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.