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

The WACC of Invesque Inc (IVQ.U.TO) is 11.8%.

The Cost of Equity of Invesque Inc (IVQ.U.TO) is 5.90%.

The Cost of Debt of Invesque Inc (IVQ.U.TO) is 13.90%.

	Range	Selected
Cost of equity	5.20% - 6.60%	5.90%
Tax rate	1.70% - 3.00%	2.35%
Cost of debt	4.60% - 23.20%	13.90%
WACC	4.7% - 19.0%	11.8%

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	0.33	0.34

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.20%	6.60%

Tax rate	1.70%	3.00%
Debt/Equity ratio	3.6	3.6
Cost of debt	4.60%	23.20%

After-tax WACC	4.7%	19.0%


Selected WACC	11.8%

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 (5.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.