CIGI.TO WACC - Weighted Average Cost of Capital

The WACC of Colliers International Group Inc (CIGI.TO) is 8.3%.

The Cost of Equity of Colliers International Group Inc (CIGI.TO) is 9.50%.

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

	Range	Selected
Cost of equity	8.20% - 10.80%	9.50%
Tax rate	31.50% - 32.30%	31.90%
Cost of debt	4.90% - 4.90%	4.90%
WACC	7.3% - 9.4%	8.3%

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	0.99	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.80%

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

After-tax WACC	7.3%	9.4%


Selected WACC	8.3%

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 (9.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.99) + 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.