PKT.V WACC - Weighted Average Cost of Capital

The WACC of Parkit Enterprise Inc (PKT.V) is 7.3%.

The Cost of Equity of Parkit Enterprise Inc (PKT.V) is 13.20%.

The Cost of Debt of Parkit Enterprise Inc (PKT.V) is 4.25%.

	Range	Selected
Cost of equity	9.60% - 16.80%	13.20%
Tax rate	0.20% - 1.10%	0.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.9% - 8.7%	7.3%

WACC

PKT.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.12	1.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	16.80%

Tax rate	0.20%	1.10%
Debt/Equity ratio	1.94	1.94
Cost of debt	4.00%	4.50%

After-tax WACC	5.9%	8.7%


Selected WACC	7.3%

PKT.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 PKT.V:

cost_of_equity (13.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.12) + 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.