GVC.TO
Glacier Media Inc
Price:  
0.14 
CAD
Volume:  
10,738.00
Canada | Media
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GVC.TO WACC - Weighted Average Cost of Capital

The WACC of Glacier Media Inc (GVC.TO) is 5.9%.

The Cost of Equity of Glacier Media Inc (GVC.TO) is 6.40%.
The Cost of Debt of Glacier Media Inc (GVC.TO) is 7.20%.

Range Selected
Cost of equity 5.40% - 7.40% 6.40%
Tax rate 15.10% - 41.50% 28.30%
Cost of debt 6.00% - 8.40% 7.20%
WACC 5.3% - 6.4% 5.9%
WACC

GVC.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 0.45
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.40% 7.40%
Tax rate 15.10% 41.50%
Debt/Equity ratio 0.65 0.65
Cost of debt 6.00% 8.40%
After-tax WACC 5.3% 6.4%
Selected WACC 5.9%

GVC.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 GVC.TO:

cost_of_equity (6.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.