CRR.UN.TO
Crombie Real Estate Investment Trust
Price:  
14.76 
CAD
Volume:  
61,462
Canada | Equity Real Estate Investment Trusts (REITs)

CRR.UN.TO WACC - Weighted Average Cost of Capital

The WACC of Crombie Real Estate Investment Trust (CRR.UN.TO) is 7.0%.

The Cost of Equity of Crombie Real Estate Investment Trust (CRR.UN.TO) is 10.5%.
The Cost of Debt of Crombie Real Estate Investment Trust (CRR.UN.TO) is 4.7%.

RangeSelected
Cost of equity8.8% - 12.2%10.5%
Tax rate0.0% - 0.1%0.05%
Cost of debt4.0% - 5.4%4.7%
WACC5.9% - 8.1%7.0%
WACC

CRR.UN.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta1.111.31
Additional risk adjustments0.0%0.5%
Cost of equity8.8%12.2%
Tax rate0.0%0.1%
Debt/Equity ratio
1.471.47
Cost of debt4.0%5.4%
After-tax WACC5.9%8.1%
Selected WACC7.0%

CRR.UN.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 CRR.UN.TO:

cost_of_equity (10.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.