PKT.V
Parkit Enterprise Inc
Price:  
0.39 
CAD
Volume:  
2,500.00
Canada | Commercial Services & Supplies
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PKT.V WACC - Weighted Average Cost of Capital

The WACC of Parkit Enterprise Inc (PKT.V) is 7.2%.

The Cost of Equity of Parkit Enterprise Inc (PKT.V) is 13.60%.
The Cost of Debt of Parkit Enterprise Inc (PKT.V) is 4.25%.

Range Selected
Cost of equity 9.80% - 17.40% 13.60%
Tax rate 0.20% - 1.10% 0.65%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.9% - 8.6% 7.2%
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 1.16 2.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 17.40%
Tax rate 0.20% 1.10%
Debt/Equity ratio 2.12 2.12
Cost of debt 4.00% 4.50%
After-tax WACC 5.9% 8.6%
Selected WACC 7.2%

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 (13.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.