SYZ.TO
Sylogist Ltd
Price:  
8.65 
CAD
Volume:  
11,808.00
Canada | IT Services
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SYZ.TO WACC - Weighted Average Cost of Capital

The WACC of Sylogist Ltd (SYZ.TO) is 7.9%.

The Cost of Equity of Sylogist Ltd (SYZ.TO) is 7.90%.
The Cost of Debt of Sylogist Ltd (SYZ.TO) is 11.70%.

Range Selected
Cost of equity 6.80% - 9.00% 7.90%
Tax rate 26.20% - 29.40% 27.80%
Cost of debt 6.80% - 16.60% 11.70%
WACC 6.6% - 9.3% 7.9%
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 0.71 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.00%
Tax rate 26.20% 29.40%
Debt/Equity ratio 0.11 0.11
Cost of debt 6.80% 16.60%
After-tax WACC 6.6% 9.3%
Selected WACC 7.9%

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 (7.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.