CRWN.TO WACC - Weighted Average Cost of Capital
The WACC of Crown Capital Partners Inc (CRWN.TO) is 12.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 20.2% | 13.3% |
| Tax rate | 13.1% - 19.1% | 16.1% |
| Cost of debt | 5.9% - 23.2% | 14.55% |
| WACC | 5.2% - 18.8% | 12.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.64 | 2.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 20.2% |
| Tax rate | 13.1% | 19.1% |
| Debt/Equity ratio | 13.27 | 13.27 |
| Cost of debt | 5.9% | 23.2% |
| After-tax WACC | 5.2% | 18.8% |
| Selected WACC | 12.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRWN.TO | Crown Capital Partners Inc | 13.27 | -0.07 | -0.01 |
| CPTA | Capitala Finance Corp | 3.1 | 1.93 | 0.55 |
| HNNA | Hennessy Advisors Inc | 0.47 | 0.6 | 0.43 |
| ICMB | Investcorp Credit Management BDC Inc | 2.46 | 0.8 | 0.27 |
| ITPC | Intrepid Capital Corp | 0.13 | -0.19 | -0.18 |
| LPC.V | Lorne Park Capital Partners Inc | 0.13 | 0.04 | 0.04 |
| MDLY | Medley Management Inc | 3.9 | 1.78 | 0.43 |
| OLY.TO | Olympia Financial Group Inc | 0.01 | 0.33 | 0.33 |
| PFX | Phenixfin Corporation | 1.35 | 0.08 | 0.04 |
| WCM.A.TO | Wilmington Capital Management Inc | 0 | -0.1 | -0.1 |
| Low | High | |
| Unlevered beta | 0.04 | 0.29 |
| Relevered beta | 0.46 | 3.43 |
| Adjusted relevered beta | 0.64 | 2.63 |
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 (13.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.