UGH.CN
Uriel Gas Holdings Corp
Price:  
0.03 
CAD
Volume:  
201,450.00
Canada | N/A
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UGH.CN WACC - Weighted Average Cost of Capital

The WACC of Uriel Gas Holdings Corp (UGH.CN) is 3.8%.

The Cost of Equity of Uriel Gas Holdings Corp (UGH.CN) is 2.50%.
The Cost of Debt of Uriel Gas Holdings Corp (UGH.CN) is 7.00%.

Range Selected
Cost of equity 1.50% - 3.50% 2.50%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 7.00% - 7.00% 7.00%
WACC 4.4% - 3.3% 3.8%
WACC

UGH.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -3.06 -3.06
Additional risk adjustments 16.0% 16.5%
Cost of equity 1.50% 3.50%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 4.4% 3.3%
Selected WACC 3.8%

UGH.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 UGH.CN:

cost_of_equity (2.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-3.06) + risk_adjustments (16.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.