CRP.TO WACC - Weighted Average Cost of Capital

The WACC of Ceres Global Ag Corp (CRP.TO) is 8.1%.

The Cost of Equity of Ceres Global Ag Corp (CRP.TO) is 8.10%.

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

	Range	Selected
Cost of equity	6.60% - 9.60%	8.10%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 14.90%	10.95%
WACC	6.2% - 10.0%	8.1%

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	0.68	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.42	0.42
Cost of debt	7.00%	14.90%

After-tax WACC	6.2%	10.0%


Selected WACC	8.1%

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 (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.