GDI.TO
GDI Integrated Facility Services Inc
Price:  
31.48 
CAD
Volume:  
1,800.00
Canada | Commercial Services & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GDI.TO WACC - Weighted Average Cost of Capital

The WACC of GDI Integrated Facility Services Inc (GDI.TO) is 6.3%.

The Cost of Equity of GDI Integrated Facility Services Inc (GDI.TO) is 7.60%.
The Cost of Debt of GDI Integrated Facility Services Inc (GDI.TO) is 5.70%.

Range Selected
Cost of equity 6.40% - 8.80% 7.60%
Tax rate 29.10% - 31.20% 30.15%
Cost of debt 4.60% - 6.80% 5.70%
WACC 5.3% - 7.4% 6.3%
WACC

GDI.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.63 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.80%
Tax rate 29.10% 31.20%
Debt/Equity ratio 0.52 0.52
Cost of debt 4.60% 6.80%
After-tax WACC 5.3% 7.4%
Selected WACC 6.3%

GDI.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 GDI.TO:

cost_of_equity (7.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.