POOL.V WACC - Weighted Average Cost of Capital

The WACC of Pool Safe Inc (POOL.V) is 5.8%.

The Cost of Equity of Pool Safe Inc (POOL.V) is 6.45%.

The Cost of Debt of Pool Safe Inc (POOL.V) is 6.75%.

	Range	Selected
Cost of equity	5.40% - 7.50%	6.45%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	6.50% - 7.00%	6.75%
WACC	5.1% - 6.5%	5.8%

WACC

POOL.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.2	0.35

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.50%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.73	0.73
Cost of debt	6.50%	7.00%

After-tax WACC	5.1%	6.5%


Selected WACC	5.8%

POOL.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 POOL.V:

cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.2) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.