The North West CoTSX:NWC -1.04%80 WACC % is 3.48% as of Jul. 01, 2026, which is 20% above its 10-year median of 2.89. GuruFocus rates TSX:NWC with a GF Score™ of 80/100 and a GF Value™ of C$47.37 (Fairly Valued). The stock has 3 warning signs investors should review. Among 314 Retail - Defensive companies, The North West Co ranks better than 73.25% on this metric.
As of today (2026-07-01), The North West Co's weighted average cost of capital is 3.48%%. The North West Co's ROIC % is 13.09% (calculated using TTM income statement data).
The North West Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
The North West Co (TSX:NWC) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The North West Co's weighted average cost of capital is 3.48%%. The North West Co's ROIC % is 13.09% (calculated using TTM income statement data).
The North West Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
The North West Co WACC % Historical Data
* Premium members only.
The historical data trend for The North West Co's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Grocery Stores subindustry, The North West Co's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The North West Co WACC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The North West Co's WACC % distribution charts can be found below:
* The bar in red indicates where The North West Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, The North West Co's market capitalization (E) is C$2343.702 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Apr. 2026, The North West Co's latest one-year quarterly average Book Value of Debt (D) is C$447.4214 Mil.
a) weight of equity = E / (E + D) = 2343.702 / (2343.702 + 447.4214) = 0.8397
b) weight of debt = D / (E + D) = 447.4214 / (2343.702 + 447.4214) = 0.1603
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.5415%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. The North West Co's beta is 0.0031.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.5415% + 0.0031 * 6% = 3.5601%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Apr. 2026, The North West Co's interest expense (positive number) was C$18.466 Mil. Its total Book Value of Debt (D) is C$447.4214 Mil.
Cost of Debt = 18.466 / 447.4214 = 4.1272%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 49.871 / 197.286 = 25.28%.
The North West Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.8397
*
3.5601%
+
0.1603
*
4.1272%
*
(1 - 25.28%)
=
3.48%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The North West Co (TSX:NWC) has a WACC % of 3.48% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The North West Co and its competitors. This is 20% above median its historical median of 2.89. According to the industry distribution chart, The North West Co ranks #84 out of 314 companies in the Retail - Defensive industry, placing it in the top 26.8%.
Is The North West Co's WACC % too high?
The North West Co's current WACC % of 3.48% is 20% above median its 10-year median of 2.89. The Retail - Defensive industry median WACC % is 5.97. The North West Co's value of 3.48% is 41.7% below this industry median. Based on the distribution chart, The North West Co ranks #84 out of 314 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, The North West Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The North West Co's WACC % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, The North West Co ranks #84 out of 314 companies for WACC %. This puts The North West Co in the upper half of its industry. The industry median WACC % is 5.97. The North West Co's value of 3.48% is 41.7% below this benchmark. While the company's 10-year median is 2.89 vs. the industry median of 5.97, The North West Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Retail - Defensive company?
The median WACC % among Retail - Defensive companies is 5.97, based on 314 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The North West Co's current WACC % of 3.48% is 41.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The North West Co and its competitors. For the Retail - Defensive industry, the median WACC % is 5.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The North West Co's current WACC % is 3.48%, which is 20% above median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The North West Co stock overvalued right now?
Based on GuruFocus' analysis, The North West Co (TSX:NWC) is currently considered Fairly Valued. The stock's GF Value™ is C$47.37, compared to a current price of C$49.38 — trading 4.2% above its estimated fair value. The current WACC % is 3.48%, which is 20% above median its 10-year median of 2.89 and 41.7% below the Retail - Defensive industry median of 5.97. The North West Co's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For The North West Co (TSX:NWC), the current WACC % is 3.48% as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The North West Co (TSX:NWC) Overvalued in 2026?
Based on GuruFocus' analysis, The North West Co stock appears to be overvalued.
The current stock price of C$49.38 is trading 4.2% above its estimated GF Value™ of C$47.37.
GuruFocus considers The North West Co to be Fairly Valued.
Key valuation signals for TSX:NWC:
WACC %: 3.48% (20% above median its 10-year median of 2.89)
GF Value™: C$47.37 vs. price of C$49.38 (4.2% above fair value)
Industry Position: 41.7% below the Retail - Defensive median (#84 of 314)
No single metric tells the full story. See the TSX:NWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The North West Co Inc is a retailer to rural and remote communities and underserved urban neighbourhood markets in Northern Canada, Western Canada, rural Alaska, the South Pacific islands, and the Caribbean. The Company offers a broad Multiple products and services with an emphasis on food, focusing on everyday household and local lifestyle needs. It operates as a retailer of food and everyday products and services through two geographical segments: Canadian and International. The Canadian segment generates maximum revenue and consists of subsidiaries operating retail stores and complementary businesses serving northern Canada, while the International segment consists of subsidiaries operating in the continental United States, the Caribbean, and the South Pacific.
80GF Score
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