PNG.V WACC - Weighted Average Cost of Capital

The WACC of Kraken Robotics Inc (PNG.V) is 7.0%.

The Cost of Equity of Kraken Robotics Inc (PNG.V) is 6.85%.

The Cost of Debt of Kraken Robotics Inc (PNG.V) is 19.20%.

	Range	Selected
Cost of equity	6.00% - 7.70%	6.85%
Tax rate	16.90% - 33.30%	25.10%
Cost of debt	14.50% - 23.90%	19.20%
WACC	6.1% - 7.8%	7.0%

WACC

PNG.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.43	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	7.70%

Tax rate	16.90%	33.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	14.50%	23.90%

After-tax WACC	6.1%	7.8%


Selected WACC	7.0%

PNG.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 PNG.V:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.