CRWN.TO WACC - Weighted Average Cost of Capital

The WACC of Crown Capital Partners Inc (CRWN.TO) is 11.8%.

The Cost of Equity of Crown Capital Partners Inc (CRWN.TO) is 8.60%.

The Cost of Debt of Crown Capital Partners Inc (CRWN.TO) is 14.55%.

	Range	Selected
Cost of equity	6.40% - 10.80%	8.60%
Tax rate	13.10% - 19.10%	16.10%
Cost of debt	5.90% - 23.20%	14.55%
WACC	5.2% - 18.3%	11.8%

WACC

CRWN.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.63	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.80%

Tax rate	13.10%	19.10%
Debt/Equity ratio	19.86	19.86
Cost of debt	5.90%	23.20%

After-tax WACC	5.2%	18.3%


Selected WACC	11.8%

CRWN.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 CRWN.TO:

cost_of_equity (8.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.