POKO.CN
Poko Innovations Inc
Price:  
0.03 
CAD
Volume:  
23,400.00
Canada | N/A
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POKO.CN WACC - Weighted Average Cost of Capital

The WACC of Poko Innovations Inc (POKO.CN) is 18.4%.

The Cost of Equity of Poko Innovations Inc (POKO.CN) is 19.65%.
The Cost of Debt of Poko Innovations Inc (POKO.CN) is 5.00%.

Range Selected
Cost of equity 17.70% - 21.60% 19.65%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 16.6% - 20.2% 18.4%
WACC

POKO.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 2.85 2.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.70% 21.60%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.08 0.08
Cost of debt 5.00% 5.00%
After-tax WACC 16.6% 20.2%
Selected WACC 18.4%

POKO.CN'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 POKO.CN:

cost_of_equity (19.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.85) + 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.