CIGI.TO WACC - Weighted Average Cost of Capital

The WACC of Colliers International Group Inc (CIGI.TO) is 8.1%.

The Cost of Equity of Colliers International Group Inc (CIGI.TO) is 9.65%.

The Cost of Debt of Colliers International Group Inc (CIGI.TO) is 4.95%.

	Range	Selected
Cost of equity	8.40% - 10.90%	9.65%
Tax rate	29.70% - 32.30%	31.00%
Cost of debt	4.40% - 5.50%	4.95%
WACC	7.1% - 9.1%	8.1%

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	1.03	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.90%

Tax rate	29.70%	32.30%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.40%	5.50%

After-tax WACC	7.1%	9.1%


Selected WACC	8.1%

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 (9.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.03) + 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.