WIB.CN
West Island Brands Inc
Price:  
0.13 
CAD
Volume:  
16,933.00
Canada | Pharmaceuticals
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WIB.CN WACC - Weighted Average Cost of Capital

The WACC of West Island Brands Inc (WIB.CN) is 7.0%.

The Cost of Equity of West Island Brands Inc (WIB.CN) is 9.85%.
The Cost of Debt of West Island Brands Inc (WIB.CN) is 5.00%.

Range Selected
Cost of equity 7.70% - 12.00% 9.85%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.9% - 8.1% 7.0%
WACC

WIB.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.89 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 12.00%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.87 0.87
Cost of debt 5.00% 5.00%
After-tax WACC 5.9% 8.1%
Selected WACC 7.0%

WIB.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 WIB.CN:

cost_of_equity (9.85%) = risk_free_rate (3.45%) + 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.