VYST
Vystar Corp
Price:  
0.08 
USD
Volume:  
15,640
United States | Chemicals

VYST WACC - Weighted Average Cost of Capital

The WACC of Vystar Corp (VYST) is 5.2%.

The Cost of Equity of Vystar Corp (VYST) is 6.2%.
The Cost of Debt of Vystar Corp (VYST) is 5.5%.

RangeSelected
Cost of equity5.1% - 7.3%6.2%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 7.0%5.5%
WACC4.1% - 6.3%5.2%
WACC

VYST WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.270.43
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.3%
Tax rate26.2%27.0%
Debt/Equity ratio
0.820.82
Cost of debt4.0%7.0%
After-tax WACC4.1%6.3%
Selected WACC5.2%

VYST'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 VYST:

cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.27) + 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.