GVC.TO WACC - Weighted Average Cost of Capital
The WACC of Glacier Media Inc (GVC.TO) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.4% | 6.4% |
| Tax rate | 15.1% - 41.5% | 28.3% |
| Cost of debt | 6.0% - 8.4% | 7.2% |
| WACC | 5.3% - 6.4% | 5.8% |
| 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 | 5.4% | 7.4% |
| Tax rate | 15.1% | 41.5% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 6.0% | 8.4% |
| After-tax WACC | 5.3% | 6.4% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GVC.TO | Glacier Media Inc | 0.7 | 0.49 | 0.31 |
| CLE.MI | Class Editori SpA | 1.92 | -0.01 | 0 |
| MON.MI | Monrif SpA | 9.78 | 0.19 | 0.02 |
| QRT.L | Quarto Group Inc | 0.28 | -0.21 | -0.17 |
| ACNI | American Community Newspapers Inc | 2.36 | 1.27 | 0.43 |
| BBGI | Beasley Broadcast Group Inc | 23.01 | 0.33 | 0.02 |
| DJCO | Daily Journal Corp | 0.05 | 0.9 | 0.86 |
| LM.V | Lingo Media Corp | 0.03 | 1.41 | 1.38 |
| PNC.A.TO | Postmedia Network Canada Corp | 2.68 | 0.82 | 0.26 |
| Low | High | |
| Unlevered beta | 0.07 | 0.3 |
| Relevered beta | 0.01 | 0.18 |
| Adjusted relevered beta | 0.34 | 0.45 |
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.