WTE.TO
Westshore Terminals Investment Corp
Price:  
28.06 
CAD
Volume:  
24,925
Canada | Transportation Infrastructure

WTE.TO WACC - Weighted Average Cost of Capital

The WACC of Westshore Terminals Investment Corp (WTE.TO) is 7.4%.

The Cost of Equity of Westshore Terminals Investment Corp (WTE.TO) is 8.5%.
The Cost of Debt of Westshore Terminals Investment Corp (WTE.TO) is 4.3%.

RangeSelected
Cost of equity7.1% - 9.9%8.5%
Tax rate27.0% - 27.0%27%
Cost of debt4.1% - 4.5%4.3%
WACC6.3% - 8.5%7.4%
WACC

WTE.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.780.93
Additional risk adjustments0.0%0.5%
Cost of equity7.1%9.9%
Tax rate27.0%27.0%
Debt/Equity ratio
0.260.26
Cost of debt4.1%4.5%
After-tax WACC6.3%8.5%
Selected WACC7.4%

WTE.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 WTE.TO:

cost_of_equity (8.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.78) + 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.