ZOMD.V WACC - Weighted Average Cost of Capital

The WACC of Zoomd Technologies Ltd (ZOMD.V) is 8.1%.

The Cost of Equity of Zoomd Technologies Ltd (ZOMD.V) is 8.25%.

The Cost of Debt of Zoomd Technologies Ltd (ZOMD.V) is 4.25%.

	Range	Selected
Cost of equity	6.90% - 9.60%	8.25%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.8% - 9.4%	8.1%

WACC

ZOMD.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.6	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.60%

Tax rate	0.10%	0.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	4.50%

After-tax WACC	6.8%	9.4%


Selected WACC	8.1%

ZOMD.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 ZOMD.V:

cost_of_equity (8.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.