CMC.CN WACC - Weighted Average Cost of Capital

The WACC of Cielo Waste Solutions Corp (CMC.CN) is 6.8%.

The Cost of Equity of Cielo Waste Solutions Corp (CMC.CN) is 6.90%.

The Cost of Debt of Cielo Waste Solutions Corp (CMC.CN) is 5.50%.

	Range	Selected
Cost of equity	5.40% - 8.40%	6.90%
Tax rate	26.50% - 26.50%	26.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.4% - 8.3%	6.8%

WACC

CMC.CN WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	4.7%	5.7%
Adjusted beta	0.33	0.62

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	8.40%

Tax rate	26.50%	26.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	7.00%

After-tax WACC	5.4%	8.3%


Selected WACC	6.8%

CMC.CN'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 CMC.CN:

cost_of_equity (6.90%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.33) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.