KEI.TO WACC - Weighted Average Cost of Capital

The WACC of Kolibri Global Energy Inc (KEI.TO) is 9.0%.

The Cost of Equity of Kolibri Global Energy Inc (KEI.TO) is 9.80%.

The Cost of Debt of Kolibri Global Energy Inc (KEI.TO) is 4.60%.

	Range	Selected
Cost of equity	8.00% - 11.60%	9.80%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	4.10% - 5.10%	4.60%
WACC	7.4% - 10.6%	9.0%

WACC

KEI.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.96	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	11.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.10%	5.10%

After-tax WACC	7.4%	10.6%


Selected WACC	9.0%

KEI.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 KEI.TO:

cost_of_equity (9.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.96) + 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.