BOIL.CN WACC - Weighted Average Cost of Capital

The WACC of Beyond Oil Ltd (BOIL.CN) is 4.2%.

The Cost of Equity of Beyond Oil Ltd (BOIL.CN) is 4.15%.

The Cost of Debt of Beyond Oil Ltd (BOIL.CN) is 7.40%.

	Range	Selected
Cost of equity	3.60% - 4.70%	4.15%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 7.80%	7.40%
WACC	3.6% - 4.7%	4.2%

WACC

BOIL.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.09	0.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.60%	4.70%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0	0
Cost of debt	7.00%	7.80%

After-tax WACC	3.6%	4.7%


Selected WACC	4.2%

BOIL.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 BOIL.CN:

cost_of_equity (4.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.09) + 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.