Stella-Jones Inc (SJ.TO) WACC Analysis

As of May 31, 2025, Stella-Jones Inc (SJ.TO) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Stella-Jones Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.4%, the cost of debt is 4.4%, and the effective tax rate is 24.8%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.64 – 0.79
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.41

What It Means for Investors

With a selected WACC of 6.4%, Stella-Jones Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.