WRG.TO WACC - Weighted Average Cost of Capital

The WACC of Western Energy Services Corp (WRG.TO) is 1177.0%.

The Cost of Equity of Western Energy Services Corp (WRG.TO) is 9.95%.

The Cost of Debt of Western Energy Services Corp (WRG.TO) is 3,048.75%.

	Range	Selected
Cost of equity	7.80% - 12.10%	9.95%
Tax rate	14.40% - 18.00%	16.20%
Cost of debt	7.00% - 6,090.50%	3,048.75%
WACC	6.9% - 2347.1%	1177.0%

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	0.91	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	12.10%

Tax rate	14.40%	18.00%
Debt/Equity ratio	0.88	0.88
Cost of debt	7.00%	6,090.50%

After-tax WACC	6.9%	2347.1%


Selected WACC	1177.0%

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 (9.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + 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.