WJX.TO WACC - Weighted Average Cost of Capital

The WACC of Wajax Corp (WJX.TO) is 7.4%.

The Cost of Equity of Wajax Corp (WJX.TO) is 11.70%.

The Cost of Debt of Wajax Corp (WJX.TO) is 4.50%.

	Range	Selected
Cost of equity	9.70% - 13.70%	11.70%
Tax rate	26.40% - 26.80%	26.60%
Cost of debt	4.40% - 4.60%	4.50%
WACC	6.4% - 8.4%	7.4%

WACC

WJX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.29	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.70%

Tax rate	26.40%	26.80%
Debt/Equity ratio	1.04	1.04
Cost of debt	4.40%	4.60%

After-tax WACC	6.4%	8.4%


Selected WACC	7.4%

WJX.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 WJX.TO:

cost_of_equity (11.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.29) + 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.