WRG.TO
Western Energy Services Corp
Price:  
2.11 
CAD
Volume:  
310.00
Canada | Energy Equipment & Services
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WRG.TO WACC - Weighted Average Cost of Capital

The WACC of Western Energy Services Corp (WRG.TO) is 2490.9%.

The Cost of Equity of Western Energy Services Corp (WRG.TO) is 11.60%.
The Cost of Debt of Western Energy Services Corp (WRG.TO) is 5,112.40%.

Range Selected
Cost of equity 9.70% - 13.50% 11.60%
Tax rate 13.60% - 18.00% 15.80%
Cost of debt 4.00% - 10,220.80% 5,112.40%
WACC 6.0% - 4975.7% 2490.9%
WACC

WRG.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.27 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.50%
Tax rate 13.60% 18.00%
Debt/Equity ratio 1.46 1.46
Cost of debt 4.00% 10,220.80%
After-tax WACC 6.0% 4975.7%
Selected WACC 2490.9%

WRG.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 WRG.TO:

cost_of_equity (11.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.27) + 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.