GIVX.TO WACC - Weighted Average Cost of Capital

The WACC of Givex Information Technology Group Ltd (GIVX.TO) is 6.3%.

The Cost of Equity of Givex Information Technology Group Ltd (GIVX.TO) is 6.40%.

The Cost of Debt of Givex Information Technology Group Ltd (GIVX.TO) is 4.80%.

	Range	Selected
Cost of equity	5.20% - 7.60%	6.40%
Tax rate	10.80% - 23.30%	17.05%
Cost of debt	4.40% - 5.20%	4.80%
WACC	5.1% - 7.4%	6.3%

WACC

GIVX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.4	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.60%

Tax rate	10.80%	23.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.40%	5.20%

After-tax WACC	5.1%	7.4%


Selected WACC	6.3%

GIVX.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 GIVX.TO:

cost_of_equity (6.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.