HAI.TO
Haivision Systems Inc
Price:  
3.97 
CAD
Volume:  
10,066.00
Canada | Communications Equipment
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HAI.TO WACC - Weighted Average Cost of Capital

The WACC of Haivision Systems Inc (HAI.TO) is 8.1%.

The Cost of Equity of Haivision Systems Inc (HAI.TO) is 8.55%.
The Cost of Debt of Haivision Systems Inc (HAI.TO) is 5.15%.

Range Selected
Cost of equity 6.80% - 10.30% 8.55%
Tax rate 17.00% - 35.30% 26.15%
Cost of debt 4.00% - 6.30% 5.15%
WACC 6.5% - 9.8% 8.1%
WACC

HAI.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 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.30%
Tax rate 17.00% 35.30%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 6.30%
After-tax WACC 6.5% 9.8%
Selected WACC 8.1%

HAI.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 HAI.TO:

cost_of_equity (8.55%) = 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.