PDFI.CN
Prophecy DeFi Inc
Price:  
0.01 
CAD
Volume:  
101,000.00
Canada | N/A
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PDFI.CN WACC - Weighted Average Cost of Capital

The WACC of Prophecy DeFi Inc (PDFI.CN) is 4.9%.

The Cost of Equity of Prophecy DeFi Inc (PDFI.CN) is 4.00%.
The Cost of Debt of Prophecy DeFi Inc (PDFI.CN) is 7.00%.

Range Selected
Cost of equity 3.50% - 4.50% 4.00%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 7.00% - 7.00% 7.00%
WACC 4.8% - 5.0% 4.9%
WACC

PDFI.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.06 0.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 3.50% 4.50%
Tax rate 25.90% 26.50%
Debt/Equity ratio 4.1 4.1
Cost of debt 7.00% 7.00%
After-tax WACC 4.8% 5.0%
Selected WACC 4.9%

PDFI.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 PDFI.CN:

cost_of_equity (4.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.06) + 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.