KEI.TO WACC - Weighted Average Cost of Capital
The WACC of Kolibri Global Energy Inc (KEI.TO) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.6% | 9.8% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.1% - 5.1% | 4.6% |
| WACC | 7.4% - 10.6% | 9.0% |
| 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 | 8.0% | 11.6% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.1% | 5.1% |
| After-tax WACC | 7.4% | 10.6% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KEI.TO | Kolibri Global Energy Inc | 0.15 | 0.75 | 0.68 |
| ATU.V | Altura Energy Inc | 0.14 | 2.04 | 1.84 |
| JEC.V | Jura Energy Corp | 5.33 | -0.48 | -0.1 |
| KUB.V | Cub Energy Inc | 0.33 | 1.53 | 1.23 |
| NZ.V | New Zealand Energy Corp | 0.47 | 2.05 | 1.52 |
| RSRV | Reserve Petroleum Co | 0.05 | 0.06 | 0.06 |
| SOIL.V | Saturn Oil & Gas Inc | 0.67 | 1.75 | 1.17 |
| TAO.V | TAG Oil Ltd | 0.02 | 2.05 | 2.03 |
| VLE.TO | Valeura Energy Inc | 0.13 | 1.05 | 0.96 |
| XBOR | Cross Border Resources Inc | 0.47 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.85 | 1.19 |
| Relevered beta | 0.94 | 1.31 |
| Adjusted relevered beta | 0.96 | 1.21 |
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.