KUB.V
Cub Energy Inc
Price:  
0.49 
CAD
Volume:  
130,350
United States | Oil, Gas & Consumable Fuels

KUB.V WACC - Weighted Average Cost of Capital

The WACC of Cub Energy Inc (KUB.V) is 9.2%.

The Cost of Equity of Cub Energy Inc (KUB.V) is 10.85%.
The Cost of Debt of Cub Energy Inc (KUB.V) is 4.3%.

RangeSelected
Cost of equity8.9% - 12.8%10.85%
Tax rate0.0% - 0.1%0.05%
Cost of debt4.0% - 4.6%4.3%
WACC7.6% - 10.7%9.2%
WACC

KUB.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.981.3
Additional risk adjustments0.0%0.5%
Cost of equity8.9%12.8%
Tax rate0.0%0.1%
Debt/Equity ratio
0.340.34
Cost of debt4.0%4.6%
After-tax WACC7.6%10.7%
Selected WACC9.2%

KUB.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 KUB.V:

cost_of_equity (10.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.