SES.TO WACC - Weighted Average Cost of Capital

The WACC of Secure Energy Services Inc (SES.TO) is 6.0%.

The Cost of Equity of Secure Energy Services Inc (SES.TO) is 6.10%.

The Cost of Debt of Secure Energy Services Inc (SES.TO) is 7.10%.

	Range	Selected
Cost of equity	4.60% - 7.60%	6.10%
Tax rate	24.60% - 25.10%	24.85%
Cost of debt	6.30% - 7.90%	7.10%
WACC	4.6% - 7.4%	6.0%

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	0.29	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	7.60%

Tax rate	24.60%	25.10%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.30%	7.90%

After-tax WACC	4.6%	7.4%


Selected WACC	6.0%

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 (6.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.29) + 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.