BRE.TO WACC - Weighted Average Cost of Capital

The WACC of Bridgemarq Real Estate Services Inc (BRE.TO) is 10.2%.

The Cost of Equity of Bridgemarq Real Estate Services Inc (BRE.TO) is 7.10%.

The Cost of Debt of Bridgemarq Real Estate Services Inc (BRE.TO) is 19.70%.

	Range	Selected
Cost of equity	5.70% - 8.50%	7.10%
Tax rate	19.50% - 29.40%	24.45%
Cost of debt	16.20% - 23.20%	19.70%
WACC	8.7% - 11.7%	10.2%

WACC

BRE.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	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.50%

Tax rate	19.50%	29.40%
Debt/Equity ratio	0.68	0.68
Cost of debt	16.20%	23.20%

After-tax WACC	8.7%	11.7%


Selected WACC	10.2%

BRE.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 BRE.TO:

cost_of_equity (7.10%) = 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.