OIL.CN WACC - Weighted Average Cost of Capital
The WACC of Permex Petroleum Corp (OIL.CN) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.3% - 6.7% | 6% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 5.9% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.33 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 6.7% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1.08 | 1.08 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 5.9% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OIL.CN | Permex Petroleum Corp | 1.08 | 0.22 | 0.12 |
| AMRR | American Metals Recovery and Recycling Inc | 2.05 | -1.29 | -0.51 |
| BROE | Baron Energy Inc | 27728.1 | -1.12 | 0 |
| EMLL | El Maniel International Inc | 0.67 | 0 | 0 |
| FTJ.V | Fort St James Nickel Corp | 0.18 | -0.07 | -0.06 |
| IMI.V | International Millennium Mining Corp | 0.02 | 0.07 | 0.07 |
| ISLV | International Silver Inc | 911.72 | 0.76 | 0 |
| OSTO | Original Sixteen to One Mine Inc | 107.73 | -1.73 | -0.02 |
| RTM.V | RT Minerals Corp | 0.12 | -1.68 | -1.54 |
| Low | High | |
| Unlevered beta | -0.02 | 0 |
| Relevered beta | -0.01 | 0 |
| Adjusted relevered beta | 0.32 | 0.33 |
OIL.CN'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 OIL.CN:
cost_of_equity (6.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.