CWC.V WACC - Weighted Average Cost of Capital
The WACC of Cwc Energy Services Corp (CWC.V) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.4% | 9.55% |
| Tax rate | 16.2% - 18.8% | 17.5% |
| Cost of debt | 4.8% - 5.3% | 5.05% |
| WACC | 6.5% - 9.0% | 7.7% |
| 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 | 7.7% | 11.4% |
| Tax rate | 16.2% | 18.8% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 4.8% | 5.3% |
| After-tax WACC | 6.5% | 9.0% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CWC.V | Cwc Energy Services Corp | 0.52 | 1.15 | 0.8 |
| CKK.V | Cordy Oilfield Services Inc | 1.79 | 0.75 | 0.3 |
| ENGT | Energy and Technology Corp | 0.33 | -0.39 | -0.31 |
| ENSV | Enservco Corp | 11.56 | -0.9 | -0.08 |
| ESN.TO | Essential Energy Services Ltd | 0.21 | 0.64 | 0.54 |
| LRDC | Laredo Oil Inc | 0.16 | 0.08 | 0.07 |
| MCR.V | Macro Enterprises Inc | 0.4 | 1.54 | 1.15 |
| NES | Nuverra Environmental Solutions Inc | 0.99 | 1.59 | 0.87 |
| SND | Smart Sand Inc | 0.16 | 1 | 0.88 |
| SOI | Solaris Oilfield Infrastructure Inc | 0.02 | 0.78 | 0.76 |
| Low | High | |
| Unlevered beta | 0.44 | 0.78 |
| Relevered beta | 0.64 | 1.12 |
| Adjusted relevered beta | 0.76 | 1.08 |
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.