TAIG.TO WACC - Weighted Average Cost of Capital

The WACC of Taiga Motors Corp (TAIG.TO) is 10.8%.

The Cost of Equity of Taiga Motors Corp (TAIG.TO) is 7.80%.

The Cost of Debt of Taiga Motors Corp (TAIG.TO) is 15.25%.

	Range	Selected
Cost of equity	6.90% - 8.70%	7.80%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 23.50%	15.25%
WACC	5.4% - 16.2%	10.8%

WACC

TAIG.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.74	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	8.70%

Tax rate	25.90%	26.50%
Debt/Equity ratio	7.02	7.02
Cost of debt	7.00%	23.50%

After-tax WACC	5.4%	16.2%


Selected WACC	10.8%

TAIG.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 TAIG.TO:

cost_of_equity (7.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.