WEE.V
Wavefront Technology Solutions Inc
Price:  
0.02 
CAD
Volume:  
5,000
Canada | Energy Equipment & Services

WEE.V WACC - Weighted Average Cost of Capital

The WACC of Wavefront Technology Solutions Inc (WEE.V) is 5.6%.

The Cost of Equity of Wavefront Technology Solutions Inc (WEE.V) is 6.05%.
The Cost of Debt of Wavefront Technology Solutions Inc (WEE.V) is 5%.

RangeSelected
Cost of equity5.1% - 7.0%6.05%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC4.8% - 6.3%5.6%
WACC

WEE.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.250.35
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.0%
Tax rate26.2%27.0%
Debt/Equity ratio
0.270.27
Cost of debt5.0%5.0%
After-tax WACC4.8%6.3%
Selected WACC5.6%

WEE.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 WEE.V:

cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.25) + 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.