ONEX.TO WACC - Weighted Average Cost of Capital

The WACC of Onex Corp (ONEX.TO) is 7.6%.

The Cost of Equity of Onex Corp (ONEX.TO) is 10.95%.

The Cost of Debt of Onex Corp (ONEX.TO) is 4.25%.

	Range	Selected
Cost of equity	9.00% - 12.90%	10.95%
Tax rate	0.30% - 0.50%	0.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 8.7%	7.6%

WACC

ONEX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.14	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.90%

Tax rate	0.30%	0.50%
Debt/Equity ratio	1.01	1.01
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	8.7%


Selected WACC	7.6%

ONEX.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 ONEX.TO:

cost_of_equity (10.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.