BLX.TO
Boralex Inc
Price:  
30.97 
CAD
Volume:  
29,364.00
Canada | Independent Power and Renewable Electricity Producers
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BLX.TO WACC - Weighted Average Cost of Capital

The WACC of Boralex Inc (BLX.TO) is 5.2%.

The Cost of Equity of Boralex Inc (BLX.TO) is 6.85%.
The Cost of Debt of Boralex Inc (BLX.TO) is 6.20%.

Range Selected
Cost of equity 5.70% - 8.00% 6.85%
Tax rate 29.80% - 36.00% 32.90%
Cost of debt 4.00% - 8.40% 6.20%
WACC 4.0% - 6.5% 5.2%
WACC

BLX.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.5 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.00%
Tax rate 29.80% 36.00%
Debt/Equity ratio 1.37 1.37
Cost of debt 4.00% 8.40%
After-tax WACC 4.0% 6.5%
Selected WACC 5.2%

BLX.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 BLX.TO:

cost_of_equity (6.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.