PYR.TO WACC - Weighted Average Cost of Capital

The WACC of Pyrogenesis Canada Inc (PYR.TO) is 7.3%.

The Cost of Equity of Pyrogenesis Canada Inc (PYR.TO) is 7.30%.

The Cost of Debt of Pyrogenesis Canada Inc (PYR.TO) is 7.20%.

	Range	Selected
Cost of equity	5.60% - 9.00%	7.30%
Tax rate	0.60% - 1.20%	0.90%
Cost of debt	7.00% - 7.40%	7.20%
WACC	5.8% - 8.8%	7.3%

WACC

PYR.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.49	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	9.00%

Tax rate	0.60%	1.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	7.40%

After-tax WACC	5.8%	8.8%


Selected WACC	7.3%

PYR.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 PYR.TO:

cost_of_equity (7.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.