BRE.TO WACC - Weighted Average Cost of Capital

The WACC of Bridgemarq Real Estate Services Inc (BRE.TO) is 9.5%.

The Cost of Equity of Bridgemarq Real Estate Services Inc (BRE.TO) is 8.30%.

The Cost of Debt of Bridgemarq Real Estate Services Inc (BRE.TO) is 18.90%.

	Range	Selected
Cost of equity	6.80% - 9.80%	8.30%
Tax rate	32.20% - 43.70%	37.95%
Cost of debt	14.60% - 23.20%	18.90%
WACC	7.9% - 11.0%	9.5%

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	0.7	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.80%

Tax rate	32.20%	43.70%
Debt/Equity ratio	0.62	0.62
Cost of debt	14.60%	23.20%

After-tax WACC	7.9%	11.0%


Selected WACC	9.5%

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 (8.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.