ZOMD.V
Zoomd Technologies Ltd
Price:  
1.23 
CAD
Volume:  
148,538.00
Canada | Software
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ZOMD.V WACC - Weighted Average Cost of Capital

The WACC of Zoomd Technologies Ltd (ZOMD.V) is 8.4%.

The Cost of Equity of Zoomd Technologies Ltd (ZOMD.V) is 8.60%.
The Cost of Debt of Zoomd Technologies Ltd (ZOMD.V) is 4.25%.

Range Selected
Cost of equity 7.60% - 9.60% 8.60%
Tax rate 0.10% - 0.30% 0.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.4% - 9.3% 8.4%
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 0.73 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 9.60%
Tax rate 0.10% 0.30%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 4.50%
After-tax WACC 7.4% 9.3%
Selected WACC 8.4%

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 (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.73) + 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.