KNR.CN
Kontrol Technologies Corp
Price:  
2.5 
CAD
Volume:  
112,820
Canada | Independent Power and Renewable Electricity Producers

KNR.CN WACC - Weighted Average Cost of Capital

The WACC of Kontrol Technologies Corp (KNR.CN) is 6.5%.

The Cost of Equity of Kontrol Technologies Corp (KNR.CN) is 6.7%.
The Cost of Debt of Kontrol Technologies Corp (KNR.CN) is 4.25%.

RangeSelected
Cost of equity5.3% - 8.1%6.7%
Tax rate5.7% - 6.3%6%
Cost of debt4.0% - 4.5%4.25%
WACC5.2% - 7.9%6.5%
WACC

KNR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.4%3.9%
Equity market risk premium4.7%5.7%
Adjusted beta0.410.66
Additional risk adjustments0.0%0.5%
Cost of equity5.3%8.1%
Tax rate5.7%6.3%
Debt/Equity ratio
0.070.07
Cost of debt4.0%4.5%
After-tax WACC5.2%7.9%
Selected WACC6.5%

KNR.CN'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 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.