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    • BNE.TO
    Bonterra Energy Corp
    Price:  
    3.6 
    CAD
    Volume:  
    52,100
    Canada | Oil, Gas & Consumable Fuels
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    Dividend Discount Model
    WACC
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    BNE.TO WACC - Weighted Average Cost of Capital

    The WACC of Bonterra Energy Corp (BNE.TO) is 8.9%.

    The Cost of Equity of Bonterra Energy Corp (BNE.TO) is 12.2%.
    The Cost of Debt of Bonterra Energy Corp (BNE.TO) is 8.15%.

    RangeSelected
    Cost of equity10.6% - 13.8%12.2%
    Tax rate23.8% - 24.4%24.1%
    Cost of debt6.8% - 9.5%8.15%
    WACC7.7% - 10.2%8.9%
    WACC

    BNE.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.471.58
    Additional risk adjustments0.0%0.5%
    Cost of equity10.6%13.8%
    Tax rate23.8%24.4%
    Debt/Equity ratio
    		1.191.19
    Cost of debt6.8%9.5%
    After-tax WACC7.7%10.2%
    Selected WACC8.9%

    BNE.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 BNE.TO:

    cost_of_equity (12.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.47) + 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.