GPK.CN
Grand Peak Capital Corp
Price:  
0.13 
CAD
Volume:  
1,780
Canada | Capital Markets

GPK.CN WACC - Weighted Average Cost of Capital

The WACC of Grand Peak Capital Corp (GPK.CN) is 5.5%.

The Cost of Equity of Grand Peak Capital Corp (GPK.CN) is 5.95%.
The Cost of Debt of Grand Peak Capital Corp (GPK.CN) is 5%.

RangeSelected
Cost of equity4.8% - 7.1%5.95%
Tax rate0.0% - 0.1%0.05%
Cost of debt5.0% - 5.0%5%
WACC4.9% - 6.0%5.5%
WACC

GPK.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.330.48
Additional risk adjustments0.0%0.5%
Cost of equity4.8%7.1%
Tax rate0.0%0.1%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.9%6.0%
Selected WACC5.5%

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.