KEI.TO WACC - Weighted Average Cost of Capital

The WACC of Kolibri Global Energy Inc (KEI.TO) is 7.1%.

The Cost of Equity of Kolibri Global Energy Inc (KEI.TO) is 7.55%.

The Cost of Debt of Kolibri Global Energy Inc (KEI.TO) is 5.90%.

	Range	Selected
Cost of equity	5.90% - 9.20%	7.55%
Tax rate	8.90% - 18.50%	13.70%
Cost of debt	4.20% - 7.60%	5.90%
WACC	5.5% - 8.6%	7.1%

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	0.54	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.20%

Tax rate	8.90%	18.50%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.20%	7.60%

After-tax WACC	5.5%	8.6%


Selected WACC	7.1%

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 (7.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.54) + 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.