The WACC of XORTX Therapeutics Inc (XRX.CN) is 7.7%.
Range | Selected | |
Cost of equity | 10.0% - 13.3% | 11.65% |
Tax rate | 26.5% - 26.5% | 26.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.8% - 8.5% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.4% | 3.9% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 1.39 | 1.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.0% | 13.3% |
Tax rate | 26.5% | 26.5% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.8% | 8.5% |
Selected WACC | 7.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
XRX.CN | XORTX Therapeutics Inc | 0.84 | 0.1 | 0.06 |
AMMJ | American Cannabis Company Inc | 2.46 | -0.16 | -0.06 |
AVMR | AVRA Medical Robotics Inc | 0.08 | 3.55 | 3.34 |
CNI.CN | Cloud Nine Web3 Technologies Inc | 0.04 | 2.49 | 2.42 |
GRNH | Greengro Technologies Inc | 259.95 | -6.91 | -0.04 |
PLUR.V | Plurilock Security Inc | 0.17 | 3.9 | 3.47 |
RIGH | RightSmile Inc | 8.47 | 51.86 | 7.18 |
SEDO | Seedo Corp | 0.21 | 1.05 | 0.91 |
TSPG | TGI Solar Power Group Inc | 0.01 | -0.65 | -0.65 |
ZEU.CN | Zeu Technologies Inc | 12.84 | 0.07 | 0.01 |
Low | High | |
Unlevered beta | 0.04 | 1.51 |
Relevered beta | 1.58 | 1.84 |
Adjusted relevered beta | 1.39 | 1.56 |
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 XRX.CN:
cost_of_equity (11.65%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.39) + 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.