LAS.A.TO
Lassonde Industries Inc
Price:  
208.6 
CAD
Volume:  
259
Canada | Food Products

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 6.55%.
The Cost of Debt of Lassonde Industries Inc (LAS.A.TO) is 5.3%.

RangeSelected
Cost of equity5.6% - 7.5%6.55%
Tax rate25.4% - 26.3%25.85%
Cost of debt4.2% - 6.4%5.3%
WACC5.0% - 6.8%5.9%
WACC

LAS.A.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.480.55
Additional risk adjustments0.0%0.5%
Cost of equity5.6%7.5%
Tax rate25.4%26.3%
Debt/Equity ratio
0.330.33
Cost of debt4.2%6.4%
After-tax WACC5.0%6.8%
Selected WACC5.9%

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 (6.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.