WRG.TO WACC - Weighted Average Cost of Capital

The WACC of Western Energy Services Corp (WRG.TO) is 2504.8%.

The Cost of Equity of Western Energy Services Corp (WRG.TO) is 10.20%.

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

	Range	Selected
Cost of equity	7.50% - 12.90%	10.20%
Tax rate	13.60% - 18.00%	15.80%
Cost of debt	4.00% - 10,220.80%	5,112.40%
WACC	5.1% - 5004.5%	2504.8%

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	0.86	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	12.90%

Tax rate	13.60%	18.00%
Debt/Equity ratio	1.48	1.48
Cost of debt	4.00%	10,220.80%

After-tax WACC	5.1%	5004.5%


Selected WACC	2504.8%

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 (10.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.