AIF.TO
Altus Group Ltd
Price:  
61.30 
CAD
Volume:  
105,447.00
Canada | Real Estate Management & Development
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AIF.TO WACC - Weighted Average Cost of Capital

The WACC of Altus Group Ltd (AIF.TO) is 6.6%.

The Cost of Equity of Altus Group Ltd (AIF.TO) is 6.80%.
The Cost of Debt of Altus Group Ltd (AIF.TO) is 6.45%.

Range Selected
Cost of equity 5.00% - 8.60% 6.80%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.50% - 8.40% 6.45%
WACC 4.9% - 8.4% 6.6%
WACC

AIF.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.37 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 8.60%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.50% 8.40%
After-tax WACC 4.9% 8.4%
Selected WACC 6.6%

AIF.TO'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 AIF.TO:

cost_of_equity (6.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.