The WACC of Kontrol Technologies Corp (KNR.CN) is 6.5%.
Range | Selected | |
Cost of equity | 5.3% - 8.1% | 6.7% |
Tax rate | 5.7% - 6.3% | 6% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.2% - 7.9% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.4% | 3.9% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 0.41 | 0.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.3% | 8.1% |
Tax rate | 5.7% | 6.3% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.2% | 7.9% |
Selected WACC | 6.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
KNR.CN | Kontrol Technologies Corp | 0.07 | 1.11 | 1.05 |
ELLO | Ellomay Capital Ltd | 2.72 | 0.39 | 0.11 |
ETX.TO | Etrion Corp | 3.52 | 0.32 | 0.07 |
INE.TO | Innergex Renewable Energy Inc | 2.46 | 0.45 | 0.14 |
NKW.V | Oceanic Wind Energy Inc | 0 | -0.75 | -0.74 |
NOVA | Sunnova Energy International Inc | 306.1 | 1.89 | 0.01 |
RNWR | 808 Renewable Energy Corp | 767.94 | -345.25 | -0.48 |
SOLR.V | Solar Alliance Energy Inc | 0.06 | 0.87 | 0.82 |
VRD.H.V | Viridis Holdings Corp | 5.66 | 1.06 | 0.17 |
Low | High | |
Unlevered beta | 0.08 | 0.13 |
Relevered beta | 0.12 | 0.49 |
Adjusted relevered beta | 0.41 | 0.66 |
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 KNR.CN:
cost_of_equity (6.70%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.41) + 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.