EHT.V
EnerDynamic Hybrid Technologies Corp
Price:  
0.05 
CAD
Volume:  
123,560.00
Canada | Electrical Equipment
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EHT.V WACC - Weighted Average Cost of Capital

The WACC of EnerDynamic Hybrid Technologies Corp (EHT.V) is 4.6%.

The Cost of Equity of EnerDynamic Hybrid Technologies Corp (EHT.V) is 6.35%.
The Cost of Debt of EnerDynamic Hybrid Technologies Corp (EHT.V) is 5.00%.

Range Selected
Cost of equity 4.80% - 7.90% 6.35%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.0% - 5.1% 4.6%
WACC

EHT.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.35 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.80% 7.90%
Tax rate 27.00% 27.00%
Debt/Equity ratio 1.92 1.92
Cost of debt 5.00% 5.00%
After-tax WACC 4.0% 5.1%
Selected WACC 4.6%

EHT.V'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 EHT.V:

cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.35) + 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.