BCI.TO
New Look Vision Group Inc
Price:  
50.00 
CAD
Volume:  
10,310.00
Canada | Specialty Retail
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BCI.TO WACC - Weighted Average Cost of Capital

The WACC of New Look Vision Group Inc (BCI.TO) is 8.0%.

The Cost of Equity of New Look Vision Group Inc (BCI.TO) is 9.30%.
The Cost of Debt of New Look Vision Group Inc (BCI.TO) is 7.45%.

Range Selected
Cost of equity 8.20% - 10.40% 9.30%
Tax rate 29.00% - 31.30% 30.15%
Cost of debt 7.40% - 7.50% 7.45%
WACC 7.3% - 8.7% 8.0%
WACC

BCI.TO WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.03 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.40%
Tax rate 29.00% 31.30%
Debt/Equity ratio 0.47 0.47
Cost of debt 7.40% 7.50%
After-tax WACC 7.3% 8.7%
Selected WACC 8.0%

BCI.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 BCI.TO:

cost_of_equity (9.30%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.03) + 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.