BYD.TO
Boyd Group Services Inc
Price:  
201.10 
CAD
Volume:  
28,645.00
Canada | Commercial Services & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BYD.TO WACC - Weighted Average Cost of Capital

The WACC of Boyd Group Services Inc (BYD.TO) is 7.6%.

The Cost of Equity of Boyd Group Services Inc (BYD.TO) is 7.45%.
The Cost of Debt of Boyd Group Services Inc (BYD.TO) is 11.40%.

Range Selected
Cost of equity 6.40% - 8.50% 7.45%
Tax rate 26.30% - 27.20% 26.75%
Cost of debt 7.90% - 14.90% 11.40%
WACC 6.2% - 9.0% 7.6%
WACC

BYD.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.63 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.50%
Tax rate 26.30% 27.20%
Debt/Equity ratio 0.29 0.29
Cost of debt 7.90% 14.90%
After-tax WACC 6.2% 9.0%
Selected WACC 7.6%

BYD.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 BYD.TO:

cost_of_equity (7.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.