CWL.TO WACC - Weighted Average Cost of Capital
The WACC of Caldwell Partners International Inc (CWL.TO) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.4% | 7.95% |
| Tax rate | 17.9% - 20.6% | 19.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 8.1% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.66 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.4% |
| Tax rate | 17.9% | 20.6% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 8.1% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CWL.TO | Caldwell Partners International Inc | 0.31 | -0.62 | -0.49 |
| BGSF | BGSF Inc | 0.94 | 0.74 | 0.42 |
| CTPR | CTPartners Executive Search Inc | 28602.77 | 0 | 0 |
| HQI | Hirequest Inc | 0.05 | 0.36 | 0.34 |
| JOB | GEE Group Inc | 0.01 | 0.55 | 0.54 |
| KFY | Korn Ferry | 0.11 | 0.97 | 0.89 |
| STJO | St Joseph Inc | 0.17 | -1.02 | -0.89 |
| TBI | TrueBlue Inc | 0.04 | 1.06 | 1.02 |
| TNET | TriNet Group Inc | 0.25 | 0.9 | 0.75 |
| PRP.L | Prime People PLC | 0.36 | 1.88 | 1.46 |
| Low | High | |
| Unlevered beta | 0.39 | 0.62 |
| Relevered beta | 0.49 | 0.78 |
| Adjusted relevered beta | 0.66 | 0.85 |
CWL.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 CWL.TO:
cost_of_equity (7.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.