CR.TO
Crew Energy Inc
Price:  
7.40 
CAD
Volume:  
136,194.00
Canada | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CR.TO WACC - Weighted Average Cost of Capital

The WACC of Crew Energy Inc (CR.TO) is 9.8%.

The Cost of Equity of Crew Energy Inc (CR.TO) is 10.10%.
The Cost of Debt of Crew Energy Inc (CR.TO) is 5.35%.

Range Selected
Cost of equity 8.70% - 11.50% 10.10%
Tax rate 20.40% - 22.80% 21.60%
Cost of debt 4.10% - 6.60% 5.35%
WACC 8.4% - 11.1% 9.8%
WACC

CR.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.1 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.50%
Tax rate 20.40% 22.80%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.10% 6.60%
After-tax WACC 8.4% 11.1%
Selected WACC 9.8%

CR.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 CR.TO:

cost_of_equity (10.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.1) + 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.