GVC.TO WACC - Weighted Average Cost of Capital

The WACC of Glacier Media Inc (GVC.TO) is 7.2%.

The Cost of Equity of Glacier Media Inc (GVC.TO) is 6.30%.

The Cost of Debt of Glacier Media Inc (GVC.TO) is 13.10%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	15.10% - 41.50%	28.30%
Cost of debt	6.00% - 20.20%	13.10%
WACC	5.3% - 9.1%	7.2%

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	0.42

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.20%

Tax rate	15.10%	41.50%
Debt/Equity ratio	0.7	0.7
Cost of debt	6.00%	20.20%

After-tax WACC	5.3%	9.1%


Selected WACC	7.2%

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 (6.30%) = 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.