ZOMD.V
Zoomd Technologies Ltd
Price:  
1.54 
CAD
Volume:  
148,538
Canada | Software

ZOMD.V WACC - Weighted Average Cost of Capital

The WACC of Zoomd Technologies Ltd (ZOMD.V) is 8.8%.

The Cost of Equity of Zoomd Technologies Ltd (ZOMD.V) is 8.95%.
The Cost of Debt of Zoomd Technologies Ltd (ZOMD.V) is 4.25%.

RangeSelected
Cost of equity7.7% - 10.2%8.95%
Tax rate0.1% - 0.3%0.2%
Cost of debt4.0% - 4.5%4.25%
WACC7.6% - 10.0%8.8%
WACC

ZOMD.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.750.87
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.2%
Tax rate0.1%0.3%
Debt/Equity ratio
0.030.03
Cost of debt4.0%4.5%
After-tax WACC7.6%10.0%
Selected WACC8.8%

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 (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.