SYZ.TO
Sylogist Ltd
Price:  
8.55 
CAD
Volume:  
17,618.00
Canada | IT Services
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SYZ.TO WACC - Weighted Average Cost of Capital

The WACC of Sylogist Ltd (SYZ.TO) is 8.1%.

The Cost of Equity of Sylogist Ltd (SYZ.TO) is 8.05%.
The Cost of Debt of Sylogist Ltd (SYZ.TO) is 12.50%.

Range Selected
Cost of equity 6.90% - 9.20% 8.05%
Tax rate 26.20% - 29.40% 27.80%
Cost of debt 8.40% - 16.60% 12.50%
WACC 6.8% - 9.4% 8.1%
WACC

SYZ.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.74 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.20%
Tax rate 26.20% 29.40%
Debt/Equity ratio 0.1 0.1
Cost of debt 8.40% 16.60%
After-tax WACC 6.8% 9.4%
Selected WACC 8.1%

SYZ.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 SYZ.TO:

cost_of_equity (8.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.