ELVA.TO WACC - Weighted Average Cost of Capital

The WACC of Electrovaya Inc (ELVA.TO) is 10.1%.

The Cost of Equity of Electrovaya Inc (ELVA.TO) is 9.35%.

The Cost of Debt of Electrovaya Inc (ELVA.TO) is 18.20%.

	Range	Selected
Cost of equity	8.10% - 10.60%	9.35%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	13.20% - 23.20%	18.20%
WACC	8.5% - 11.8%	10.1%

WACC

ELVA.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.98	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.23	0.23
Cost of debt	13.20%	23.20%

After-tax WACC	8.5%	11.8%


Selected WACC	10.1%

ELVA.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 ELVA.TO:

cost_of_equity (9.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.