TFII.TO WACC - Weighted Average Cost of Capital

The WACC of TFI International Inc (TFII.TO) is 7.6%.

The Cost of Equity of TFI International Inc (TFII.TO) is 9.10%.

The Cost of Debt of TFI International Inc (TFII.TO) is 4.95%.

	Range	Selected
Cost of equity	7.90% - 10.30%	9.10%
Tax rate	22.70% - 23.50%	23.10%
Cost of debt	4.90% - 5.00%	4.95%
WACC	6.7% - 8.4%	7.6%

WACC

TFII.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.30%

Tax rate	22.70%	23.50%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.90%	5.00%

After-tax WACC	6.7%	8.4%


Selected WACC	7.6%

TFII.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 TFII.TO:

cost_of_equity (9.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.