HAI.TO WACC - Weighted Average Cost of Capital

The WACC of Haivision Systems Inc (HAI.TO) is 7.9%.

The Cost of Equity of Haivision Systems Inc (HAI.TO) is 8.25%.

The Cost of Debt of Haivision Systems Inc (HAI.TO) is 5.75%.

	Range	Selected
Cost of equity	6.70% - 9.80%	8.25%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	4.50% - 7.00%	5.75%
WACC	6.4% - 9.3%	7.9%

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	0.69	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.80%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.50%	7.00%

After-tax WACC	6.4%	9.3%


Selected WACC	7.9%

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 (8.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.