VSBY.CN WACC - Weighted Average Cost of Capital

The WACC of VSBLTY Groupe Technologies Corp (VSBY.CN) is 6.2%.

The Cost of Equity of VSBLTY Groupe Technologies Corp (VSBY.CN) is 5.95%.

The Cost of Debt of VSBLTY Groupe Technologies Corp (VSBY.CN) is 10.85%.

	Range	Selected
Cost of equity	5.20% - 6.70%	5.95%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 14.70%	10.85%
WACC	5.2% - 7.3%	6.2%

WACC

VSBY.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.3	0.33

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.20%	6.70%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.17	0.17
Cost of debt	7.00%	14.70%

After-tax WACC	5.2%	7.3%


Selected WACC	6.2%

VSBY.CN'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 VSBY.CN:

cost_of_equity (5.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.3) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.