LAS.A.TO WACC - Weighted Average Cost of Capital

The WACC of Lassonde Industries Inc (LAS.A.TO) is 5.9%.

The Cost of Equity of Lassonde Industries Inc (LAS.A.TO) is 6.60%.

The Cost of Debt of Lassonde Industries Inc (LAS.A.TO) is 5.25%.

	Range	Selected
Cost of equity	5.80% - 7.40%	6.60%
Tax rate	25.40% - 26.30%	25.85%
Cost of debt	4.10% - 6.40%	5.25%
WACC	5.1% - 6.7%	5.9%

WACC

LAS.A.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.52	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.40%

Tax rate	25.40%	26.30%
Debt/Equity ratio	0.35	0.35
Cost of debt	4.10%	6.40%

After-tax WACC	5.1%	6.7%


Selected WACC	5.9%

LAS.A.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 LAS.A.TO:

cost_of_equity (6.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.