CWV.V WACC - Weighted Average Cost of Capital

The WACC of Crown Point Energy Inc (CWV.V) is 11.4%.

The Cost of Equity of Crown Point Energy Inc (CWV.V) is 12.35%.

The Cost of Debt of Crown Point Energy Inc (CWV.V) is 13.90%.

	Range	Selected
Cost of equity	10.20% - 14.50%	12.35%
Tax rate	15.60% - 20.50%	18.05%
Cost of debt	7.00% - 20.80%	13.90%
WACC	6.7% - 16.2%	11.4%

WACC

CWV.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.25	1.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	14.50%

Tax rate	15.60%	20.50%
Debt/Equity ratio	4.57	4.57
Cost of debt	7.00%	20.80%

After-tax WACC	6.7%	16.2%


Selected WACC	11.4%

CWV.V'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 CWV.V:

cost_of_equity (12.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.25) + 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.