DKL.V
Decklar Resources Inc
Price:  
0.03 
CAD
Volume:  
104,640
Canada | Oil, Gas & Consumable Fuels

DKL.V WACC - Weighted Average Cost of Capital

The WACC of Decklar Resources Inc (DKL.V) is 5.6%.

The Cost of Equity of Decklar Resources Inc (DKL.V) is 11.1%.
The Cost of Debt of Decklar Resources Inc (DKL.V) is 5%.

RangeSelected
Cost of equity7.5% - 14.7%11.1%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC4.7% - 6.5%5.6%
WACC

DKL.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.711.62
Additional risk adjustments0.0%0.5%
Cost of equity7.5%14.7%
Tax rate26.2%27.0%
Debt/Equity ratio
2.882.88
Cost of debt5.0%5.0%
After-tax WACC4.7%6.5%
Selected WACC5.6%

DKL.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 DKL.V:

cost_of_equity (11.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.