BYSD.TA WACC - Weighted Average Cost of Capital

The WACC of Bayside Land Corporation Ltd (BYSD.TA) is 6.9%.

The Cost of Equity of Bayside Land Corporation Ltd (BYSD.TA) is 10.25%.

The Cost of Debt of Bayside Land Corporation Ltd (BYSD.TA) is 4.35%.

	Range	Selected
Cost of equity	8.80% - 11.70%	10.25%
Tax rate	22.00% - 22.30%	22.15%
Cost of debt	4.00% - 4.70%	4.35%
WACC	6.1% - 7.8%	6.9%

WACC

BYSD.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.07	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.70%

Tax rate	22.00%	22.30%
Debt/Equity ratio	0.94	0.94
Cost of debt	4.00%	4.70%

After-tax WACC	6.1%	7.8%


Selected WACC	6.9%

BYSD.TA'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 BYSD.TA:

cost_of_equity (10.25%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (1.07) + 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.