IVQ.U.TO WACC - Weighted Average Cost of Capital

The WACC of Invesque Inc (IVQ.U.TO) is 6.6%.

The Cost of Equity of Invesque Inc (IVQ.U.TO) is 6.60%.

The Cost of Debt of Invesque Inc (IVQ.U.TO) is 6.80%.

	Range	Selected
Cost of equity	5.30% - 7.90%	6.60%
Tax rate	0.20% - 1.20%	0.70%
Cost of debt	5.20% - 8.40%	6.80%
WACC	5.2% - 8.0%	6.6%

WACC

IVQ.U.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.46	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.90%

Tax rate	0.20%	1.20%
Debt/Equity ratio	0.38	0.38
Cost of debt	5.20%	8.40%

After-tax WACC	5.2%	8.0%


Selected WACC	6.6%

IVQ.U.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 IVQ.U.TO:

cost_of_equity (6.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.