CF.TO WACC - Weighted Average Cost of Capital

The WACC of Canaccord Genuity Group Inc (CF.TO) is 8.7%.

The Cost of Equity of Canaccord Genuity Group Inc (CF.TO) is 10.35%.

The Cost of Debt of Canaccord Genuity Group Inc (CF.TO) is 11.00%.

	Range	Selected
Cost of equity	8.60% - 12.10%	10.35%
Tax rate	27.90% - 36.20%	32.05%
Cost of debt	8.40% - 13.60%	11.00%
WACC	7.2% - 10.2%	8.7%

WACC

CF.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.07	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.10%

Tax rate	27.90%	36.20%
Debt/Equity ratio	1.25	1.25
Cost of debt	8.40%	13.60%

After-tax WACC	7.2%	10.2%


Selected WACC	8.7%

CF.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 CF.TO:

cost_of_equity (10.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.07) + 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.