TOY.TO WACC - Weighted Average Cost of Capital

The WACC of Spin Master Corp (TOY.TO) is 7.9%.

The Cost of Equity of Spin Master Corp (TOY.TO) is 9.30%.

The Cost of Debt of Spin Master Corp (TOY.TO) is 4.25%.

	Range	Selected
Cost of equity	8.00% - 10.60%	9.30%
Tax rate	24.50% - 27.30%	25.90%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.9% - 8.9%	7.9%

WACC

TOY.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.95	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.60%

Tax rate	24.50%	27.30%
Debt/Equity ratio	0.3	0.3
Cost of debt	4.00%	4.50%

After-tax WACC	6.9%	8.9%


Selected WACC	7.9%

TOY.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 TOY.TO:

cost_of_equity (9.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.95) + 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.