GDI.TO
GDI Integrated Facility Services Inc
Price:  
32.87 
CAD
Volume:  
1,157.00
Canada | Commercial Services & Supplies
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GDI.TO WACC - Weighted Average Cost of Capital

The WACC of GDI Integrated Facility Services Inc (GDI.TO) is 6.5%.

The Cost of Equity of GDI Integrated Facility Services Inc (GDI.TO) is 7.50%.
The Cost of Debt of GDI Integrated Facility Services Inc (GDI.TO) is 6.50%.

Range Selected
Cost of equity 6.30% - 8.70% 7.50%
Tax rate 29.10% - 31.20% 30.15%
Cost of debt 4.60% - 8.40% 6.50%
WACC 5.3% - 7.7% 6.5%
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 0.62 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.70%
Tax rate 29.10% 31.20%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.60% 8.40%
After-tax WACC 5.3% 7.7%
Selected WACC 6.5%

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 (7.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.