PAYT.TA WACC - Weighted Average Cost of Capital

The WACC of Payton Industries Ltd (PAYT.TA) is 8.5%.

The Cost of Equity of Payton Industries Ltd (PAYT.TA) is 12.50%.

The Cost of Debt of Payton Industries Ltd (PAYT.TA) is 5.40%.

	Range	Selected
Cost of equity	10.50% - 14.50%	12.50%
Tax rate	17.90% - 18.10%	18.00%
Cost of debt	5.40% - 5.40%	5.40%
WACC	7.5% - 9.5%	8.5%

WACC

PAYT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	1.01	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	14.50%

Tax rate	17.90%	18.10%
Debt/Equity ratio	1	1
Cost of debt	5.40%	5.40%

After-tax WACC	7.5%	9.5%


Selected WACC	8.5%

PAYT.TA'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 PAYT.TA:

cost_of_equity (12.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.01) + 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.