CGY.TO WACC - Weighted Average Cost of Capital

The WACC of Calian Group Ltd (CGY.TO) is 6.6%.

The Cost of Equity of Calian Group Ltd (CGY.TO) is 7.50%.

The Cost of Debt of Calian Group Ltd (CGY.TO) is 4.30%.

	Range	Selected
Cost of equity	5.90% - 9.10%	7.50%
Tax rate	37.20% - 39.90%	38.55%
Cost of debt	4.00% - 4.60%	4.30%
WACC	5.3% - 7.9%	6.6%

WACC

CGY.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.54	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.10%

Tax rate	37.20%	39.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	4.60%

After-tax WACC	5.3%	7.9%


Selected WACC	6.6%

CGY.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 CGY.TO:

cost_of_equity (7.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.54) + 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.