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    • IFP.TO
    Interfor Corp
    Price:  
    13.18 
    CAD
    Volume:  
    23,174
    Canada | Paper & Forest Products
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    IFP.TO WACC - Weighted Average Cost of Capital

    The WACC of Interfor Corp (IFP.TO) is 7.0%.

    The Cost of Equity of Interfor Corp (IFP.TO) is 10.65%.
    The Cost of Debt of Interfor Corp (IFP.TO) is 6.05%.

    RangeSelected
    Cost of equity8.3% - 13.0%10.65%
    Tax rate24.6% - 25.1%24.85%
    Cost of debt5.1% - 7.0%6.05%
    WACC5.7% - 8.4%7.0%
    WACC

    IFP.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.011.45
    Additional risk adjustments0.0%0.5%
    Cost of equity8.3%13.0%
    Tax rate24.6%25.1%
    Debt/Equity ratio
    		1.461.46
    Cost of debt5.1%7.0%
    After-tax WACC5.7%8.4%
    Selected WACC7.0%

    IFP.TO WACC - Detailed calculations of Beta

    Debt/EquityUnlevered
    PeersCompany NameratioBetabeta
    IFP.TOInterfor Corp1.461.050.5
    AEP.V Atlas Engineered Products Ltd 0.6 0.48 0.33
    CFF.TO Conifex Timber Inc 5.75 2.03 0.38
    CFP.TO Canfor Corp 0.43 1.02 0.77
    GLT Glatfelter Corp 1.16 1.55 0.83
    LPX Louisiana-Pacific Corp 0.06 0.93 0.89
    NP Neenah Inc 0.86 1.49 0.91
    SJ.TO Stella-Jones Inc 0.39 0.59 0.46
    VRS Verso Corp 0.01 1.89 1.88
    LowHigh
    Unlevered beta0.550.82
    Relevered beta1.011.67
    Adjusted relevered beta1.011.45

    IFP.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 IFP.TO:

    cost_of_equity (10.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.01) + 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.