TGIF.CN
1933 Industries Inc
Price:  
0.01 
CAD
Volume:  
93,750
Canada | Pharmaceuticals

TGIF.CN WACC - Weighted Average Cost of Capital

The WACC of 1933 Industries Inc (TGIF.CN) is 8.5%.

The Cost of Equity of 1933 Industries Inc (TGIF.CN) is 34.1%.
The Cost of Debt of 1933 Industries Inc (TGIF.CN) is 5%.

RangeSelected
Cost of equity22.2% - 46.0%34.1%
Tax rate3.5% - 5.5%4.5%
Cost of debt5.0% - 5.0%5%
WACC7.0% - 10.0%8.5%
WACC

TGIF.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta3.746.85
Additional risk adjustments0.0%0.5%
Cost of equity22.2%46.0%
Tax rate3.5%5.5%
Debt/Equity ratio
6.846.84
Cost of debt5.0%5.0%
After-tax WACC7.0%10.0%
Selected WACC8.5%

TGIF.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 TGIF.CN:

cost_of_equity (34.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.74) + 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.