INO.UN.TO WACC - Weighted Average Cost of Capital

The WACC of Inovalis Real Estate Investment Trust (INO.UN.TO) is 12.6%.

The Cost of Equity of Inovalis Real Estate Investment Trust (INO.UN.TO) is 9.15%.

The Cost of Debt of Inovalis Real Estate Investment Trust (INO.UN.TO) is 13.60%.

	Range	Selected
Cost of equity	7.30% - 11.00%	9.15%
Tax rate	1.80% - 3.90%	2.85%
Cost of debt	4.00% - 23.20%	13.60%
WACC	4.3% - 21.0%	12.6%

WACC

INO.UN.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.81	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.00%

Tax rate	1.80%	3.90%
Debt/Equity ratio	7.73	7.73
Cost of debt	4.00%	23.20%

After-tax WACC	4.3%	21.0%


Selected WACC	12.6%

INO.UN.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 INO.UN.TO:

cost_of_equity (9.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.