BYRN.CN WACC - Weighted Average Cost of Capital

The WACC of Byrna Technologies Inc (BYRN.CN) is 8.5%.

The Cost of Equity of Byrna Technologies Inc (BYRN.CN) is 8.55%.

The Cost of Debt of Byrna Technologies Inc (BYRN.CN) is 11.25%.

	Range	Selected
Cost of equity	7.20% - 9.90%	8.55%
Tax rate	26.50% - 26.50%	26.50%
Cost of debt	7.00% - 15.50%	11.25%
WACC	7.2% - 9.9%	8.5%

WACC

BYRN.CN WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	4.7%	5.7%
Adjusted beta	0.82	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	9.90%

Tax rate	26.50%	26.50%
Debt/Equity ratio	0	0
Cost of debt	7.00%	15.50%

After-tax WACC	7.2%	9.9%


Selected WACC	8.5%

BYRN.CN'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 BYRN.CN:

cost_of_equity (8.55%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.82) + 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.