IVQ.U.TO WACC - Weighted Average Cost of Capital

The WACC of Invesque Inc (IVQ.U.TO) is 10.0%.

The Cost of Equity of Invesque Inc (IVQ.U.TO) is 12.35%.

The Cost of Debt of Invesque Inc (IVQ.U.TO) is 9.75%.

	Range	Selected
Cost of equity	10.00% - 14.70%	12.35%
Tax rate	1.70% - 3.00%	2.35%
Cost of debt	4.60% - 14.90%	9.75%
WACC	5.5% - 14.5%	10.0%

WACC

IVQ.U.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.49	1.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	14.70%

Tax rate	1.70%	3.00%
Debt/Equity ratio	4.8	4.8
Cost of debt	4.60%	14.90%

After-tax WACC	5.5%	14.5%


Selected WACC	10.0%

IVQ.U.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 IVQ.U.TO:

cost_of_equity (12.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.10%) * adjusted_beta (1.49) + 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.