GDI.TO WACC - Weighted Average Cost of Capital

The WACC of GDI Integrated Facility Services Inc (GDI.TO) is 6.4%.

The Cost of Equity of GDI Integrated Facility Services Inc (GDI.TO) is 7.65%.

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

	Range	Selected
Cost of equity	6.40% - 8.90%	7.65%
Tax rate	29.10% - 31.20%	30.15%
Cost of debt	4.60% - 6.80%	5.70%
WACC	5.3% - 7.5%	6.4%

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	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.90%

Tax rate	29.10%	31.20%
Debt/Equity ratio	0.51	0.51
Cost of debt	4.60%	6.80%

After-tax WACC	5.3%	7.5%


Selected WACC	6.4%

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 (7.65%) = 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.