GSY.TO WACC - Weighted Average Cost of Capital

The WACC of goeasy Ltd (GSY.TO) is 8.9%.

The Cost of Equity of goeasy Ltd (GSY.TO) is 29.15%.

The Cost of Debt of goeasy Ltd (GSY.TO) is 9.15%.

	Range	Selected
Cost of equity	20.70% - 37.60%	29.15%
Tax rate	24.90% - 26.60%	25.75%
Cost of debt	6.60% - 11.70%	9.15%
WACC	6.5% - 11.3%	8.9%

WACC

GSY.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	3.45	5.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.70%	37.60%

Tax rate	24.90%	26.60%
Debt/Equity ratio	9.62	9.62
Cost of debt	6.60%	11.70%

After-tax WACC	6.5%	11.3%


Selected WACC	8.9%

GSY.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 GSY.TO:

cost_of_equity (29.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.45) + 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.