TBL.TO WACC - Weighted Average Cost of Capital

The WACC of Taiga Building Products Ltd (TBL.TO) is 9.1%.

The Cost of Equity of Taiga Building Products Ltd (TBL.TO) is 10.45%.

The Cost of Debt of Taiga Building Products Ltd (TBL.TO) is 4.45%.

	Range	Selected
Cost of equity	9.00% - 11.90%	10.45%
Tax rate	26.30% - 26.40%	26.35%
Cost of debt	4.00% - 4.90%	4.45%
WACC	7.8% - 10.4%	9.1%

WACC

TBL.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.14	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.90%

Tax rate	26.30%	26.40%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	4.90%

After-tax WACC	7.8%	10.4%


Selected WACC	9.1%

TBL.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 TBL.TO:

cost_of_equity (10.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.