TFII.TO
TFI International Inc
Price:  
112.98 
CAD
Volume:  
47,469.00
Canada | Road & Rail
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TFII.TO WACC - Weighted Average Cost of Capital

The WACC of TFI International Inc (TFII.TO) is 7.4%.

The Cost of Equity of TFI International Inc (TFII.TO) is 9.00%.
The Cost of Debt of TFI International Inc (TFII.TO) is 4.95%.

Range Selected
Cost of equity 7.90% - 10.10% 9.00%
Tax rate 22.70% - 23.50% 23.10%
Cost of debt 4.90% - 5.00% 4.95%
WACC 6.7% - 8.2% 7.4%
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 0.94 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.10%
Tax rate 22.70% 23.50%
Debt/Equity ratio 0.43 0.43
Cost of debt 4.90% 5.00%
After-tax WACC 6.7% 8.2%
Selected WACC 7.4%

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 (9.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.94) + 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.