GOOS.TO
Canada Goose Holdings Inc
Price:  
11.46 
CAD
Volume:  
67,419.00
Canada | Textiles, Apparel & Luxury Goods
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GOOS.TO WACC - Weighted Average Cost of Capital

The WACC of Canada Goose Holdings Inc (GOOS.TO) is 5.7%.

The Cost of Equity of Canada Goose Holdings Inc (GOOS.TO) is 6.65%.
The Cost of Debt of Canada Goose Holdings Inc (GOOS.TO) is 5.35%.

Range Selected
Cost of equity 4.90% - 8.40% 6.65%
Tax rate 19.10% - 21.10% 20.10%
Cost of debt 5.30% - 5.40% 5.35%
WACC 4.6% - 6.7% 5.7%
WACC

GOOS.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.34 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 8.40%
Tax rate 19.10% 21.10%
Debt/Equity ratio 0.66 0.66
Cost of debt 5.30% 5.40%
After-tax WACC 4.6% 6.7%
Selected WACC 5.7%

GOOS.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 GOOS.TO:

cost_of_equity (6.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.