PERK.CN WACC - Weighted Average Cost of Capital
The WACC of Perk Labs Inc (PERK.CN) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.3% | 6.3% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.44 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.3% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PERK.CN | Perk Labs Inc | 0.03 | -0.4 | -0.4 |
| BIGG.CN | BIGG Digital Assets Inc | 0 | 2 | 2 |
| INTV | Integrated Ventures Inc | 0.24 | -0.05 | -0.04 |
| IOTC | Iota Communications Inc | 202.21 | -0.75 | -0.01 |
| PCYG | Park City Group Inc | 0 | 0.15 | 0.15 |
| PKK.CN | Peak Fintech Group Inc | 1.91 | 1.84 | 0.76 |
| SHSP | SharpSpring Inc | 0.02 | 1.84 | 1.81 |
| TEUM | Pareteum Corp | 206.35 | 0.8 | 0.01 |
| VENZ.V | Venzee Technologies Inc | 0.3 | 0.22 | 0.18 |
| VSBY.CN | VSBLTY Groupe Technologies Corp | 0.22 | -0.85 | -0.73 |
| Low | High | |
| Unlevered beta | 0 | 0.16 |
| Relevered beta | 0 | 0.16 |
| Adjusted relevered beta | 0.33 | 0.44 |
PERK.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 PERK.CN:
cost_of_equity (6.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.