YTY.V
Wi2wi Corp
Price:  
0.02 
CAD
Volume:  
160,770.00
United States | Communications Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

YTY.V WACC - Weighted Average Cost of Capital

The WACC of Wi2wi Corp (YTY.V) is 5.6%.

The Cost of Equity of Wi2wi Corp (YTY.V) is 7.25%.
The Cost of Debt of Wi2wi Corp (YTY.V) is 6.55%.

Range Selected
Cost of equity 5.40% - 9.10% 7.25%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 6.10% - 7.00% 6.55%
WACC 4.8% - 6.5% 5.6%
WACC

YTY.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.3 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 9.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.91 1.91
Cost of debt 6.10% 7.00%
After-tax WACC 4.8% 6.5%
Selected WACC 5.6%

YTY.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 YTY.V:

cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.3) + 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.