QBR.B.TO
Quebecor Inc
Price:  
37.52 
CAD
Volume:  
150,507.00
Canada | Media
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QBR.B.TO WACC - Weighted Average Cost of Capital

The WACC of Quebecor Inc (QBR.B.TO) is 5.9%.

The Cost of Equity of Quebecor Inc (QBR.B.TO) is 8.00%.
The Cost of Debt of Quebecor Inc (QBR.B.TO) is 5.00%.

Range Selected
Cost of equity 5.90% - 10.10% 8.00%
Tax rate 25.90% - 26.20% 26.05%
Cost of debt 4.90% - 5.10% 5.00%
WACC 4.8% - 7.1% 5.9%
WACC

QBR.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 0.55 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 10.10%
Tax rate 25.90% 26.20%
Debt/Equity ratio 0.93 0.93
Cost of debt 4.90% 5.10%
After-tax WACC 4.8% 7.1%
Selected WACC 5.9%

QBR.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 QBR.B.TO:

cost_of_equity (8.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.