PRKV WACC - Weighted Average Cost of Capital
The WACC of ParkVida Group Inc (PRKV) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.9% | 6.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.6% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.46 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.6% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRKV | ParkVida Group Inc | 0.09 | 0.5 | 0.47 |
| ECDP | Eco Depot Inc | 0 | 0.18 | 0.18 |
| GCCC.V | GCC Global Capital Corp | 4.35 | 1.09 | 0.26 |
| GWSN | Gulf West Security Network Inc | 937720 | -2.09 | 0 |
| NTPY | Netpay International Inc | 54.41 | -0.55 | -0.01 |
| SLTN | Silverton Energy Inc | 0 | 1.92 | 1.92 |
| STQN | Strategic Acquisitions Inc | 0.94 | 0.26 | 0.15 |
| TIP.H.V | Tyner Resources Ltd | 0.08 | 0.35 | 0.33 |
| Low | High | |
| Unlevered beta | 0.18 | 0.27 |
| Relevered beta | 0.19 | 0.33 |
| Adjusted relevered beta | 0.46 | 0.55 |
PRKV'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 PRKV:
cost_of_equity (6.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.