MAH.V
Marksmen Energy Inc
Price:  
0.01 
CAD
Volume:  
112,000.00
Canada | Oil, Gas & Consumable Fuels
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MAH.V WACC - Weighted Average Cost of Capital

The WACC of Marksmen Energy Inc (MAH.V) is 5.3%.

The Cost of Equity of Marksmen Energy Inc (MAH.V) is 7.35%.
The Cost of Debt of Marksmen Energy Inc (MAH.V) is 5.00%.

Range Selected
Cost of equity 4.80% - 9.90% 7.35%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.2% - 6.5% 5.3%
WACC

MAH.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0 0.66
Additional risk adjustments 1.0% 1.5%
Cost of equity 4.80% 9.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.21 1.21
Cost of debt 5.00% 5.00%
After-tax WACC 4.2% 6.5%
Selected WACC 5.3%

MAH.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 MAH.V:

cost_of_equity (7.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (-0) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.