CWC.V WACC - Weighted Average Cost of Capital

The WACC of Cwc Energy Services Corp (CWC.V) is 7.7%.

The Cost of Equity of Cwc Energy Services Corp (CWC.V) is 9.55%.

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

	Range	Selected
Cost of equity	7.70% - 11.40%	9.55%
Tax rate	16.20% - 18.80%	17.50%
Cost of debt	4.80% - 5.30%	5.05%
WACC	6.5% - 9.0%	7.7%

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	0.76	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	11.40%

Tax rate	16.20%	18.80%
Debt/Equity ratio	0.52	0.52
Cost of debt	4.80%	5.30%

After-tax WACC	6.5%	9.0%


Selected WACC	7.7%

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 (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.