WJX.TO WACC - Weighted Average Cost of Capital

The WACC of Wajax Corp (WJX.TO) is 7.9%.

The Cost of Equity of Wajax Corp (WJX.TO) is 13.05%.

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

	Range	Selected
Cost of equity	11.30% - 14.80%	13.05%
Tax rate	26.40% - 26.80%	26.60%
Cost of debt	4.40% - 4.60%	4.50%
WACC	7.0% - 8.8%	7.9%

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	1.6	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.80%

Tax rate	26.40%	26.80%
Debt/Equity ratio	1.13	1.13
Cost of debt	4.40%	4.60%

After-tax WACC	7.0%	8.8%


Selected WACC	7.9%

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 (13.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.6) + 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.