GRID.TO WACC - Weighted Average Cost of Capital

The WACC of Tantalus Systems Holding Inc (GRID.TO) is 6.3%.

The Cost of Equity of Tantalus Systems Holding Inc (GRID.TO) is 6.15%.

The Cost of Debt of Tantalus Systems Holding Inc (GRID.TO) is 7.20%.

	Range	Selected
Cost of equity	5.40% - 6.90%	6.15%
Tax rate	0.60% - 0.70%	0.65%
Cost of debt	7.00% - 7.40%	7.20%
WACC	5.6% - 6.9%	6.3%

WACC

GRID.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.44	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	6.90%

Tax rate	0.60%	0.70%
Debt/Equity ratio	0.15	0.15
Cost of debt	7.00%	7.40%

After-tax WACC	5.6%	6.9%


Selected WACC	6.3%

GRID.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 GRID.TO:

cost_of_equity (6.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.