CIX.TO WACC - Weighted Average Cost of Capital

The WACC of CI Financial Corp (CIX.TO) is 7.5%.

The Cost of Equity of CI Financial Corp (CIX.TO) is 11.65%.

The Cost of Debt of CI Financial Corp (CIX.TO) is 5.30%.

	Range	Selected
Cost of equity	9.80% - 13.50%	11.65%
Tax rate	33.80% - 46.00%	39.90%
Cost of debt	4.30% - 6.30%	5.30%
WACC	6.4% - 8.6%	7.5%

WACC

CIX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.3	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.50%

Tax rate	33.80%	46.00%
Debt/Equity ratio	0.95	0.95
Cost of debt	4.30%	6.30%

After-tax WACC	6.4%	8.6%


Selected WACC	7.5%

CIX.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 CIX.TO:

cost_of_equity (11.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.3) + 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.