ICE.TO WACC - Weighted Average Cost of Capital
The WACC of Canlan Ice Sports Corp (ICE.TO) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.8% - 11.4% | 9.6% |
| Tax rate | 16.9% - 36.5% | 26.7% |
| Cost of debt | 5.0% - 6.8% | 5.9% |
| WACC | 6.1% - 8.0% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.91 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 11.4% |
| Tax rate | 16.9% | 36.5% |
| Debt/Equity ratio | 0.91 | 0.91 |
| Cost of debt | 5.0% | 6.8% |
| After-tax WACC | 6.1% | 8.0% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ICE.TO | Canlan Ice Sports Corp | 0.91 | -0.01 | -0.01 |
| AAP.H.V | Alpha Peak Leisure Inc | 0.02 | 0.96 | 0.94 |
| DS | Drive Shack Inc | 3.99 | 1.45 | 0.36 |
| PLNT | Planet Fitness Inc | 0.28 | 0.77 | 0.63 |
| PRKA | Parks! America Inc | 0.12 | 0.67 | 0.61 |
| PRXIQ | Premier Exhibitions Inc | 11307.69 | -0.95 | 0 |
| SEAS | SeaWorld Entertainment Inc | 0.66 | 1.4 | 0.93 |
| SIX | Six Flags Entertainment Corp | 0.88 | 1.94 | 1.16 |
| TNA.V | Evergreen Gaming Corp | 0.15 | 1.02 | 0.92 |
| TWC.TO | TWC Enterprises Ltd | 0.07 | 0.22 | 0.21 |
| Low | High | |
| Unlevered beta | 0.51 | 0.75 |
| Relevered beta | 0.87 | 1.27 |
| Adjusted relevered beta | 0.91 | 1.18 |
ICE.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 ICE.TO:
cost_of_equity (9.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + 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.