GPK.CN WACC - Weighted Average Cost of Capital
The WACC of Grand Peak Capital Corp (GPK.CN) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.1% | 5.95% |
| Tax rate | 0.0% - 0.1% | 0.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.0% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.1% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.0% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GPK.CN | Grand Peak Capital Corp | 0.82 | -2.62 | -1.44 |
| CGRA | Cgrowth Capital Inc | 0.01 | 0.23 | 0.23 |
| ESGW.V | ESG Global Impact Capital Inc | 0.06 | 1.02 | 0.97 |
| FRTD | Fortitude Group Inc | 769.54 | 0.02 | 0 |
| GLAE | Glassbridge Enterprises Inc | 5.87 | 0.23 | 0.03 |
| HPIL | HPIL Holding | 15.83 | 0 | 0 |
| IDEA | Aeon Ventures Inc | 0.42 | -1.19 | -0.84 |
| SCGX | GTEK Industries Inc | 0.01 | -0.15 | -0.15 |
| SUNS | SLR Senior Investment Corp | 1.37 | 0.98 | 0.41 |
| VTNA | Vetanova Inc | 11.61 | 0 | 0 |
| WP.V | Western Pacific Trust Co | 0.23 | 0.96 | 0.78 |
| Low | High | |
| Unlevered beta | 0 | 0.03 |
| Relevered beta | 0 | 0.22 |
| Adjusted relevered beta | 0.33 | 0.48 |
GPK.CN'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 GPK.CN:
cost_of_equity (5.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.