SES.TO WACC - Weighted Average Cost of Capital

The WACC of Secure Energy Services Inc (SES.TO) is 7.6%.

The Cost of Equity of Secure Energy Services Inc (SES.TO) is 8.30%.

The Cost of Debt of Secure Energy Services Inc (SES.TO) is 6.40%.

	Range	Selected
Cost of equity	6.20% - 10.40%	8.30%
Tax rate	24.60% - 25.10%	24.85%
Cost of debt	4.90% - 7.90%	6.40%
WACC	5.7% - 9.5%	7.6%

WACC

SES.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.6	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.40%

Tax rate	24.60%	25.10%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.90%	7.90%

After-tax WACC	5.7%	9.5%


Selected WACC	7.6%

SES.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 SES.TO:

cost_of_equity (8.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.