SGR.UN.TO
Slate Grocery REIT
Price:  
13.89 
CAD
Volume:  
71,025.00
Canada | Equity Real Estate Investment Trusts (REITs)
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SGR.UN.TO WACC - Weighted Average Cost of Capital

The WACC of Slate Grocery REIT (SGR.UN.TO) is 6.7%.

The Cost of Equity of Slate Grocery REIT (SGR.UN.TO) is 11.00%.
The Cost of Debt of Slate Grocery REIT (SGR.UN.TO) is 5.75%.

Range Selected
Cost of equity 9.20% - 12.80% 11.00%
Tax rate 17.20% - 21.90% 19.55%
Cost of debt 4.70% - 6.80% 5.75%
WACC 5.7% - 7.8% 6.7%
WACC

SGR.UN.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.18 1.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 12.80%
Tax rate 17.20% 21.90%
Debt/Equity ratio 1.97 1.97
Cost of debt 4.70% 6.80%
After-tax WACC 5.7% 7.8%
Selected WACC 6.7%

SGR.UN.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 SGR.UN.TO:

cost_of_equity (11.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.