PKB.CN WACC - Weighted Average Cost of Capital
The WACC of PeakBirch Logic Inc (PKB.CN) is 4.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.8% | 8.3% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 4.7% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 5.31 | 5.31 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 4.7% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PKB.CN | PeakBirch Logic Inc | 5.31 | -0.13 | -0.03 |
| AFF.V | Affinity Metals Corp | 0.1 | 0.27 | 0.25 |
| BAY.V | Aston Bay Holdings Ltd | 0.05 | 1.13 | 1.09 |
| CBA.V | Champion Bear Resources Ltd | 0.21 | -1.54 | -1.34 |
| CMD.V | Commander Resources Ltd | 0.01 | 0.55 | 0.54 |
| MAC.V | THEMAC Resources Group Ltd | 24.44 | 2.08 | 0.11 |
| MRO.V | Millrock Resources Inc | 0.07 | 0.01 | 0.01 |
| NI.CN | Victory Nickel Inc | 11.38 | 1.17 | 0.12 |
| RMD.V | Richmond Minerals Inc | 0.33 | 0.17 | 0.14 |
| SZM.V | ScoZinc Mining Ltd | 0 | 1.87 | 1.86 |
| Low | High | |
| Unlevered beta | 0.12 | 0.18 |
| Relevered beta | 0.58 | 0.9 |
| Adjusted relevered beta | 0.72 | 0.93 |
PKB.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 PKB.CN:
cost_of_equity (8.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.72) + 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.