CEU.TO WACC - Weighted Average Cost of Capital

The WACC of CES Energy Solutions Corp (CEU.TO) is 8.4%.

The Cost of Equity of CES Energy Solutions Corp (CEU.TO) is 9.55%.

The Cost of Debt of CES Energy Solutions Corp (CEU.TO) is 5.60%.

	Range	Selected
Cost of equity	8.30% - 10.80%	9.55%
Tax rate	18.80% - 19.20%	19.00%
Cost of debt	4.10% - 7.10%	5.60%
WACC	7.2% - 9.6%	8.4%

WACC

CEU.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.02	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.80%

Tax rate	18.80%	19.20%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.10%	7.10%

After-tax WACC	7.2%	9.6%


Selected WACC	8.4%

CEU.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 CEU.TO:

cost_of_equity (9.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.