PKG.CN
ParcelPal Technology Inc
Price:  
0.02 
CAD
Volume:  
75,320.00
Canada | Air Freight & Logistics
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PKG.CN WACC - Weighted Average Cost of Capital

The WACC of ParcelPal Technology Inc (PKG.CN) is 5.9%.

The Cost of Equity of ParcelPal Technology Inc (PKG.CN) is 7.45%.
The Cost of Debt of ParcelPal Technology Inc (PKG.CN) is 7.45%.

Range Selected
Cost of equity 5.70% - 9.20% 7.45%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 7.00% - 7.90% 7.45%
WACC 5.3% - 6.6% 5.9%
WACC

PKG.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.5 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 9.20%
Tax rate 25.90% 26.50%
Debt/Equity ratio 3.4 3.4
Cost of debt 7.00% 7.90%
After-tax WACC 5.3% 6.6%
Selected WACC 5.9%

PKG.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 PKG.CN:

cost_of_equity (7.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.