CWC.V
Cwc Energy Services Corp
Price:  
0.16 
CAD
Volume:  
285,500.00
Canada | Energy Equipment & Services
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CWC.V WACC - Weighted Average Cost of Capital

The WACC of Cwc Energy Services Corp (CWC.V) is 8.1%.

The Cost of Equity of Cwc Energy Services Corp (CWC.V) is 10.20%.
The Cost of Debt of Cwc Energy Services Corp (CWC.V) is 5.05%.

Range Selected
Cost of equity 8.80% - 11.60% 10.20%
Tax rate 16.20% - 18.80% 17.50%
Cost of debt 4.80% - 5.30% 5.05%
WACC 7.2% - 9.1% 8.1%
WACC

CWC.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.98 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.60%
Tax rate 16.20% 18.80%
Debt/Equity ratio 0.52 0.52
Cost of debt 4.80% 5.30%
After-tax WACC 7.2% 9.1%
Selected WACC 8.1%

CWC.V'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 CWC.V:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.