WRG.TO WACC - Weighted Average Cost of Capital

The WACC of Western Energy Services Corp (WRG.TO) is 1164.5%.

The Cost of Equity of Western Energy Services Corp (WRG.TO) is 8.20%.

The Cost of Debt of Western Energy Services Corp (WRG.TO) is 3,055.35%.

	Range	Selected
Cost of equity	5.60% - 10.80%	8.20%
Tax rate	14.40% - 18.00%	16.20%
Cost of debt	20.20% - 6,090.50%	3,055.35%
WACC	11.0% - 2317.9%	1164.5%

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	0.48	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	10.80%

Tax rate	14.40%	18.00%
Debt/Equity ratio	0.86	0.86
Cost of debt	20.20%	6,090.50%

After-tax WACC	11.0%	2317.9%


Selected WACC	1164.5%

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 (8.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.