SGR.UN.TO
Slate Grocery REIT
Price:  
14.56 
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 6.8%.

The Cost of Equity of Slate Grocery REIT (SGR.UN.TO) is 10.90%.
The Cost of Debt of Slate Grocery REIT (SGR.UN.TO) is 5.75%.

Range Selected
Cost of equity 9.10% - 12.70% 10.90%
Tax rate 17.20% - 21.90% 19.55%
Cost of debt 4.70% - 6.80% 5.75%
WACC 5.7% - 7.8% 6.8%
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 1.17 1.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.70%
Tax rate 17.20% 21.90%
Debt/Equity ratio 1.91 1.91
Cost of debt 4.70% 6.80%
After-tax WACC 5.7% 7.8%
Selected WACC 6.8%

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 (10.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.17) + 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.