PRB.V WACC - Weighted Average Cost of Capital

The WACC of Probe Metals Inc (PRB.V) is 12.1%.

The Cost of Equity of Probe Metals Inc (PRB.V) is 12.10%.

The Cost of Debt of Probe Metals Inc (PRB.V) is 5.00%.

	Range	Selected
Cost of equity	10.80% - 13.40%	12.10%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.8% - 13.4%	12.1%

WACC

PRB.V WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.5%	6.5%
Adjusted beta	1.21	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.40%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	10.8%	13.4%


Selected WACC	12.1%

PRB.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 PRB.V:

cost_of_equity (12.10%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (1.21) + 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.