VirtualArmour International Inc (VAI.CN) WACC Analysis

As of May 28, 2025, VirtualArmour International Inc (VAI.CN) carries a Weighted Average Cost of Capital (WACC) of 8.6%. WACC reflects the blended rate VirtualArmour International Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.4%, the cost of debt is 7.0%, and the effective tax rate is 26.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.4% – 3.9%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.33 – 0.36
• Additional risk adjustment: 0.5% – 1.0%
• Debt-to-equity ratio: 0.17

What It Means for Investors

With a selected WACC of 8.6%, VirtualArmour International Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.