SLNG.CN WACC - Weighted Average Cost of Capital

The WACC of Slang Worldwide Inc (SLNG.CN) is 8.7%.

The Cost of Equity of Slang Worldwide Inc (SLNG.CN) is 34.20%.

The Cost of Debt of Slang Worldwide Inc (SLNG.CN) is 8.45%.

	Range	Selected
Cost of equity	23.90% - 44.50%	34.20%
Tax rate	5.80% - 11.00%	8.40%
Cost of debt	7.00% - 9.90%	8.45%
WACC	7.2% - 10.2%	8.7%

WACC

SLNG.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	4.06	6.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.90%	44.50%

Tax rate	5.80%	11.00%
Debt/Equity ratio	26.06	26.06
Cost of debt	7.00%	9.90%

After-tax WACC	7.2%	10.2%


Selected WACC	8.7%

SLNG.CN'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 SLNG.CN:

cost_of_equity (34.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (4.06) + 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.