BOS.TO WACC - Weighted Average Cost of Capital

The WACC of AirBoss of America Corp (BOS.TO) is 12.2%.

The Cost of Equity of AirBoss of America Corp (BOS.TO) is 11.95%.

The Cost of Debt of AirBoss of America Corp (BOS.TO) is 14.85%.

	Range	Selected
Cost of equity	9.70% - 14.20%	11.95%
Tax rate	12.20% - 17.00%	14.60%
Cost of debt	6.50% - 23.20%	14.85%
WACC	7.4% - 17.0%	12.2%

WACC

BOS.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.28	1.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	14.20%

Tax rate	12.20%	17.00%
Debt/Equity ratio	1.34	1.34
Cost of debt	6.50%	23.20%

After-tax WACC	7.4%	17.0%


Selected WACC	12.2%

BOS.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 BOS.TO:

cost_of_equity (11.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.28) + 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.