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.