PKI.TO WACC - Weighted Average Cost of Capital
The WACC of Parkland Corp (PKI.TO) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.0% - 9.1% | 7.05% |
| Tax rate | 13.0% - 19.0% | 16% |
| Cost of debt | 5.3% - 6.8% | 6.05% |
| WACC | 4.8% - 7.3% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 9.1% |
| Tax rate | 13.0% | 19.0% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 5.3% | 6.8% |
| After-tax WACC | 4.8% | 7.3% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PKI.TO | Parkland Corp | 0.99 | 1.12 | 0.61 |
| BDCO | Blue Dolphin Energy Co | 1.64 | -0.18 | -0.08 |
| CRDE | Cardinal Ethanol LLC | 0.13 | 0.03 | 0.03 |
| DK | Delek US Holdings Inc | 2.3 | 1.65 | 0.57 |
| GFGY | Granite Falls Energy LLC | 0.36 | -0.07 | -0.06 |
| GLP | Global Partners LP | 1 | 0.71 | 0.39 |
| HFC | HollyFrontier Corp | 0.53 | 1.58 | 1.09 |
| RTSO | RTS Oil Holdings Inc | 77.76 | 0 | 0 |
| SUN | Sunoco LP | 1 | 0.74 | 0.4 |
| VTNR | Vertex Energy Inc | 72.03 | 1.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.39 |
| Relevered beta | 0.04 | 0.72 |
| Adjusted relevered beta | 0.36 | 0.81 |
PKI.TO'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 PKI.TO:
cost_of_equity (7.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.