PFNO WACC - Weighted Average Cost of Capital
The WACC of ParaFin Corp (PFNO) is 4.8%.
| Range | Selected | |
| Cost of equity | 80.5% - 256.0% | 168.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 5.4% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 16.65 | 44.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 80.5% | 256.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 139.3 | 139.3 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 5.4% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PFNO | ParaFin Corp | 139.3 | 0.61 | 0.01 |
| BAU.V | Blue Star Gold Corp | 0.12 | 1.39 | 1.28 |
| CRS.CN | Crestview Exploration Inc | 0.1 | -0.16 | -0.15 |
| GCX.V | Granite Creek Copper Ltd | 0.06 | 0.98 | 0.94 |
| GLDC.V | Cassiar Gold Corp | 0 | 1.61 | 1.61 |
| LUX.CN | Newlox Gold Ventures Corp | 0.36 | -0.74 | -0.59 |
| MOJ.CN | Mojave Gold Corp | 0.01 | 0.96 | 0.96 |
| NVX.V | NV Gold Corp | 0.26 | -0.64 | -0.54 |
| PLAN.V | Progressive Planet Solutions Inc | 0.38 | 0.5 | 0.39 |
| TTX.CN | Tantalex Resources Corp | 2.31 | 1.21 | 0.45 |
| Low | High | |
| Unlevered beta | 0.24 | 0.65 |
| Relevered beta | 24.36 | 66.45 |
| Adjusted relevered beta | 16.65 | 44.85 |
PFNO'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 PFNO:
cost_of_equity (168.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (16.65) + 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.