CRP.TO WACC - Weighted Average Cost of Capital

The WACC of Ceres Global Ag Corp (CRP.TO) is 7.3%.

The Cost of Equity of Ceres Global Ag Corp (CRP.TO) is 6.60%.

The Cost of Debt of Ceres Global Ag Corp (CRP.TO) is 10.95%.

	Range	Selected
Cost of equity	5.10% - 8.10%	6.60%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 14.90%	10.95%
WACC	5.1% - 9.5%	7.3%

WACC

CRP.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.38	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	8.10%

Tax rate	25.90%	26.50%
Debt/Equity ratio	1.01	1.01
Cost of debt	7.00%	14.90%

After-tax WACC	5.1%	9.5%


Selected WACC	7.3%

CRP.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 CRP.TO:

cost_of_equity (6.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.