KEI.TO
Kolibri Global Energy Inc
Price:  
9.94 
CAD
Volume:  
18,444
United States | Oil, Gas & Consumable Fuels

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 9.8%.
The Cost of Debt of Kolibri Global Energy Inc (KEI.TO) is 4.6%.

RangeSelected
Cost of equity8.0% - 11.6%9.8%
Tax rate25.9% - 26.5%26.2%
Cost of debt4.1% - 5.1%4.6%
WACC7.4% - 10.6%9.0%
WACC

KEI.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.961.21
Additional risk adjustments0.0%0.5%
Cost of equity8.0%11.6%
Tax rate25.9%26.5%
Debt/Equity ratio
0.150.15
Cost of debt4.1%5.1%
After-tax WACC7.4%10.6%
Selected WACC9.0%

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.