CanWel Building Materials Group Ltd (CWX.TO) WACC Analysis

As of December 15, 2025, CanWel Building Materials Group Ltd (CWX.TO) carries a Weighted Average Cost of Capital (WACC) of 6.8%. WACC reflects the blended rate CanWel Building Materials Group Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 6.7%, the cost of debt is 4.0%, and the effective tax rate is 21.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.4% – 3.9%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.72 – 1.08
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.53

What It Means for Investors

With a selected WACC of 6.8%, CanWel Building Materials Group Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.