Canadian General Investments Ltd (CGI.TO) WACC Analysis

As of June 4, 2025, Canadian General Investments Ltd (CGI.TO) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate Canadian General Investments Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 7.3%, the cost of debt is 4.4%, and the effective tax rate is 0.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.81 – 1
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.25

What It Means for Investors

With a selected WACC of 8.1%, Canadian General Investments Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.