CIGI.TO WACC - Weighted Average Cost of Capital

The WACC of Colliers International Group Inc (CIGI.TO) is 8.2%.

The Cost of Equity of Colliers International Group Inc (CIGI.TO) is 9.40%.

The Cost of Debt of Colliers International Group Inc (CIGI.TO) is 4.90%.

	Range	Selected
Cost of equity	8.10% - 10.70%	9.40%
Tax rate	31.50% - 32.30%	31.90%
Cost of debt	4.90% - 4.90%	4.90%
WACC	7.2% - 9.3%	8.2%

WACC

CIGI.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.97	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.70%

Tax rate	31.50%	32.30%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.90%	4.90%

After-tax WACC	7.2%	9.3%


Selected WACC	8.2%

CIGI.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 CIGI.TO:

cost_of_equity (9.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + 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.