PHA.V WACC - Weighted Average Cost of Capital
The WACC of Premier Health of America Inc (PHA.V) is 6.5%.
| Range | Selected | |
| Cost of equity | 10.2% - 28.3% | 19.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 8.6% | 7.8% |
| WACC | 5.5% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.24 | 3.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 28.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 16.33 | 16.33 |
| Cost of debt | 7.0% | 8.6% |
| After-tax WACC | 5.5% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PHA.V | Premier Health of America Inc | 16.33 | 1.56 | 0.12 |
| CRL.CN | Carl Data Solutions Inc | 0.13 | 0.79 | 0.72 |
| DCSI.CN | Direct Communication Solutions Inc | 1.28 | 0.08 | 0.04 |
| IONI | I-On Digital Corp | 0.02 | 1.33 | 1.31 |
| IQST | Iqstel Inc | 0.27 | 0.9 | 0.75 |
| NUR.CN | Nuran Wireless Inc | 8.19 | 0.58 | 0.08 |
| TO.CN | Tower One Wireless Corp | 2.81 | 0.59 | 0.19 |
| VHI.V | Vitalhub Corp | 0.01 | 1.57 | 1.56 |
| Low | High | |
| Unlevered beta | 0.18 | 0.73 |
| Relevered beta | 1.36 | 5.22 |
| Adjusted relevered beta | 1.24 | 3.83 |
PHA.V'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 PHA.V:
cost_of_equity (19.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.24) + 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.