TIL.V WACC - Weighted Average Cost of Capital
The WACC of Till Capital Corp (TIL.V) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.5% | 9.05% |
| Tax rate | 2.9% - 4.1% | 3.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 7.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.73 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.5% |
| Tax rate | 2.9% | 4.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 7.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TIL.V | Till Capital Corp | 1.01 | 0.72 | 0.36 |
| AOREF | American Overseas Group Ltd | 0.74 | 0.15 | 0.09 |
| ESGR | Enstar Group Ltd | 0.37 | 0.15 | 0.11 |
| GLRE | Greenlight Capital Re Ltd | 0.13 | 0.56 | 0.5 |
| GVFG | Gerova Financial Group Ltd | 0.56 | 1 | 0.65 |
| MHLD | Maiden Holdings Ltd | 2.07 | 1.28 | 0.43 |
| NXG.V | NexgenRx Inc | 0.03 | 1.06 | 1.03 |
| OXBR | Oxbridge Re Holdings Ltd | 0.01 | 1.54 | 1.53 |
| PPHI | Positive Physicians Holdings Inc | 0 | 0.96 | 0.96 |
| RE | Everest Re Group Ltd | 0.22 | 0.41 | 0.34 |
| RNR | Renaissancere Holdings Ltd | 0.16 | 0.28 | 0.25 |
| Low | High | |
| Unlevered beta | 0.36 | 0.5 |
| Relevered beta | 0.6 | 0.9 |
| Adjusted relevered beta | 0.73 | 0.93 |
TIL.V'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 TIL.V:
cost_of_equity (9.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.73) + 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.