PDIV WACC - Weighted Average Cost of Capital
The WACC of Premier Development & Investment Inc (PDIV) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.8% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.8% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PDIV | Premier Development & Investment Inc | 0 | -13.7 | -13.68 |
| ASPD | Aspen Digital Inc | 1.07 | 0.15 | 0.08 |
| BBUCQ | Michigan Brewery Inc | 12.9 | 0.37 | 0.04 |
| BEV.CN | Bevcanna Enterprises Inc | 0.52 | -1.57 | -1.14 |
| BRGC | BrightRock Gold Corp | 0 | -0.59 | -0.59 |
| BTC.CN | Bluesky Digital Assets Corp | 0.01 | -0.21 | -0.2 |
| CBK.CN | Copperbank Resources Corp | 0.01 | 1.33 | 1.32 |
| DLTI | DLT Resolution Inc | 0.26 | 0.35 | 0.29 |
| FARM.V | Deveron Corp | 5.37 | 1.41 | 0.29 |
| GTEH | Gentech Holdings Inc | 79.58 | 0 | 0 |
| VINO | Gaucho Group Holdings Inc | 30.57 | 1.25 | 0.05 |
| Low | High | |
| Unlevered beta | 0 | 0.05 |
| Relevered beta | 0 | 0.03 |
| Adjusted relevered beta | 0.33 | 0.35 |
PDIV'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 PDIV:
cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.