CYB.TO WACC - Weighted Average Cost of Capital

The WACC of Cymbria Corp (CYB.TO) is 8.2%.

The Cost of Equity of Cymbria Corp (CYB.TO) is 8.10%.

The Cost of Debt of Cymbria Corp (CYB.TO) is 13.10%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	12.40% - 14.40%	13.40%
Cost of debt	4.00% - 22.20%	13.10%
WACC	6.6% - 9.8%	8.2%

WACC

CYB.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.71	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	12.40%	14.40%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	22.20%

After-tax WACC	6.6%	9.8%


Selected WACC	8.2%

CYB.TO'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 CYB.TO:

cost_of_equity (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.