WJX.TO WACC - Weighted Average Cost of Capital

The WACC of Wajax Corp (WJX.TO) is 7.6%.

The Cost of Equity of Wajax Corp (WJX.TO) is 10.15%.

The Cost of Debt of Wajax Corp (WJX.TO) is 4.55%.

	Range	Selected
Cost of equity	8.40% - 11.90%	10.15%
Tax rate	26.10% - 26.30%	26.20%
Cost of debt	4.40% - 4.70%	4.55%
WACC	6.4% - 8.7%	7.6%

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	1.02	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	11.90%

Tax rate	26.10%	26.30%
Debt/Equity ratio	0.61	0.61
Cost of debt	4.40%	4.70%

After-tax WACC	6.4%	8.7%


Selected WACC	7.6%

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 (10.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.