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	0.73	0.82

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 (0.73) + 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.