CFE.CN
Cartier Iron Corp
Price:  
0.15 
CAD
Volume:  
71,382.00
Canada | Diversified Financial Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CFE.CN WACC - Weighted Average Cost of Capital

The WACC of Cartier Iron Corp (CFE.CN) is 6.3%.

The Cost of Equity of Cartier Iron Corp (CFE.CN) is 6.35%.
The Cost of Debt of Cartier Iron Corp (CFE.CN) is 5.00%.

Range Selected
Cost of equity 4.90% - 7.80% 6.35%
Tax rate 2.50% - 4.60% 3.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 7.7% 6.3%
WACC

CFE.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.34 0.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.80%
Tax rate 2.50% 4.60%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 7.7%
Selected WACC 6.3%

CFE.CN'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 CFE.CN:

cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.