CGY.TO WACC - Weighted Average Cost of Capital

The WACC of Calian Group Ltd (CGY.TO) is 6.3%.

The Cost of Equity of Calian Group Ltd (CGY.TO) is 7.05%.

The Cost of Debt of Calian Group Ltd (CGY.TO) is 4.70%.

	Range	Selected
Cost of equity	5.70% - 8.40%	7.05%
Tax rate	37.20% - 39.90%	38.55%
Cost of debt	4.00% - 5.40%	4.70%
WACC	5.2% - 7.5%	6.3%

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	0.5	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.40%

Tax rate	37.20%	39.90%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	5.40%

After-tax WACC	5.2%	7.5%


Selected WACC	6.3%

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 (7.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.