SAP.TO
Saputo Inc
Price:  
29.18 
CAD
Volume:  
490,318.00
Canada | Food Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SAP.TO WACC - Weighted Average Cost of Capital

The WACC of Saputo Inc (SAP.TO) is 5.2%.

The Cost of Equity of Saputo Inc (SAP.TO) is 5.80%.
The Cost of Debt of Saputo Inc (SAP.TO) is 4.30%.

Range Selected
Cost of equity 5.00% - 6.60% 5.80%
Tax rate 29.80% - 33.20% 31.50%
Cost of debt 4.00% - 4.60% 4.30%
WACC 4.5% - 5.8% 5.2%
WACC

SAP.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.37 0.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 6.60%
Tax rate 29.80% 33.20%
Debt/Equity ratio 0.3 0.3
Cost of debt 4.00% 4.60%
After-tax WACC 4.5% 5.8%
Selected WACC 5.2%

SAP.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 SAP.TO:

cost_of_equity (5.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.