PYR.TO
Pyrogenesis Canada Inc
Price:  
0.43 
CAD
Volume:  
9,603.00
Canada | Commercial Services & Supplies
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PYR.TO WACC - Weighted Average Cost of Capital

The WACC of Pyrogenesis Canada Inc (PYR.TO) is 6.4%.

The Cost of Equity of Pyrogenesis Canada Inc (PYR.TO) is 6.35%.
The Cost of Debt of Pyrogenesis Canada Inc (PYR.TO) is 7.20%.

Range Selected
Cost of equity 5.10% - 7.60% 6.35%
Tax rate 0.60% - 1.20% 0.90%
Cost of debt 7.00% - 7.40% 7.20%
WACC 5.3% - 7.6% 6.4%
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 0.38 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 7.60%
Tax rate 0.60% 1.20%
Debt/Equity ratio 0.11 0.11
Cost of debt 7.00% 7.40%
After-tax WACC 5.3% 7.6%
Selected WACC 6.4%

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 (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.