SEC.TO WACC - Weighted Average Cost of Capital

The WACC of Senvest Capital Inc (SEC.TO) is 14.1%.

The Cost of Equity of Senvest Capital Inc (SEC.TO) is 7.70%.

The Cost of Debt of Senvest Capital Inc (SEC.TO) is 420.15%.

	Range	Selected
Cost of equity	6.40% - 9.00%	7.70%
Tax rate	12.90% - 14.90%	13.90%
Cost of debt	7.00% - 833.30%	420.15%
WACC	6.4% - 21.8%	14.1%

WACC

SEC.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.64	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.00%

Tax rate	12.90%	14.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	833.30%

After-tax WACC	6.4%	21.8%


Selected WACC	14.1%

SEC.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 SEC.TO:

cost_of_equity (7.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.