POG.V WACC - Weighted Average Cost of Capital

The WACC of Perisson Petroleum Corp (POG.V) is 8.5%.

The Cost of Equity of Perisson Petroleum Corp (POG.V) is 9.75%.

The Cost of Debt of Perisson Petroleum Corp (POG.V) is 4.45%.

	Range	Selected
Cost of equity	7.40% - 12.10%	9.75%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.00% - 4.90%	4.45%
WACC	6.6% - 10.4%	8.5%

WACC

POG.V WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.59	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	12.10%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.00%	4.90%

After-tax WACC	6.6%	10.4%


Selected WACC	8.5%

POG.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 POG.V:

cost_of_equity (9.75%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.59) + 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.