LGT.B.TO WACC - Weighted Average Cost of Capital

The WACC of Logistec Corp (LGT.B.TO) is 5.7%.

The Cost of Equity of Logistec Corp (LGT.B.TO) is 5.95%.

The Cost of Debt of Logistec Corp (LGT.B.TO) is 6.60%.

	Range	Selected
Cost of equity	4.90% - 7.00%	5.95%
Tax rate	17.90% - 21.00%	19.45%
Cost of debt	4.80% - 8.40%	6.60%
WACC	4.6% - 6.9%	5.7%

WACC

LGT.B.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.35	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.00%

Tax rate	17.90%	21.00%
Debt/Equity ratio	0.48	0.48
Cost of debt	4.80%	8.40%

After-tax WACC	4.6%	6.9%


Selected WACC	5.7%

LGT.B.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 LGT.B.TO:

cost_of_equity (5.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.