CR.TO WACC - Weighted Average Cost of Capital

The WACC of Crew Energy Inc (CR.TO) is 9.5%.

The Cost of Equity of Crew Energy Inc (CR.TO) is 9.85%.

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

	Range	Selected
Cost of equity	8.30% - 11.40%	9.85%
Tax rate	20.40% - 22.80%	21.60%
Cost of debt	4.10% - 6.60%	5.35%
WACC	8.0% - 11.0%	9.5%

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	1.02	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.40%

Tax rate	20.40%	22.80%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.10%	6.60%

After-tax WACC	8.0%	11.0%


Selected WACC	9.5%

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 (9.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.