PLSI
Phoenix Life Sciences International Ltd
Price:  
0.00 
USD
Volume:  
7,410.00
United States | Pharmaceuticals
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PLSI WACC - Weighted Average Cost of Capital

The WACC of Phoenix Life Sciences International Ltd (PLSI) is 4.3%.

The Cost of Equity of Phoenix Life Sciences International Ltd (PLSI) is 68.90%.
The Cost of Debt of Phoenix Life Sciences International Ltd (PLSI) is 5.00%.

Range Selected
Cost of equity 26.00% - 111.80% 68.90%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.9% - 4.8% 4.3%
WACC

PLSI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 4.81 19.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 26.00% 111.80%
Tax rate 26.20% 27.00%
Debt/Equity ratio 97.13 97.13
Cost of debt 5.00% 5.00%
After-tax WACC 3.9% 4.8%
Selected WACC 4.3%

PLSI'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 PLSI:

cost_of_equity (68.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.81) + 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.