PRL.TO
Propel Holdings Inc
Price:  
37.87 
CAD
Volume:  
61,634.00
Canada | Consumer Finance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PRL.TO WACC - Weighted Average Cost of Capital

The WACC of Propel Holdings Inc (PRL.TO) is 7.3%.

The Cost of Equity of Propel Holdings Inc (PRL.TO) is 7.40%.
The Cost of Debt of Propel Holdings Inc (PRL.TO) is 9.25%.

Range Selected
Cost of equity 5.90% - 8.90% 7.40%
Tax rate 25.60% - 26.30% 25.95%
Cost of debt 4.90% - 13.60% 9.25%
WACC 5.4% - 9.1% 7.3%
WACC

PRL.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.53 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 8.90%
Tax rate 25.60% 26.30%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.90% 13.60%
After-tax WACC 5.4% 9.1%
Selected WACC 7.3%

PRL.TO'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 PRL.TO:

cost_of_equity (7.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.