YOOM.CN
Yooma Wellness Inc
Price:  
0.01 
CAD
Volume:  
36,840.00
Canada | N/A
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YOOM.CN WACC - Weighted Average Cost of Capital

The WACC of Yooma Wellness Inc (YOOM.CN) is 12.1%.

The Cost of Equity of Yooma Wellness Inc (YOOM.CN) is 19.20%.
The Cost of Debt of Yooma Wellness Inc (YOOM.CN) is 5.00%.

Range Selected
Cost of equity 17.30% - 21.10% 19.20%
Tax rate 0.10% - 0.50% 0.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.2% - 13.0% 12.1%
WACC

YOOM.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 2.78 2.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.30% 21.10%
Tax rate 0.10% 0.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 11.2% 13.0%
Selected WACC 12.1%

YOOM.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 YOOM.CN:

cost_of_equity (19.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.78) + 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.