PTU.V WACC - Weighted Average Cost of Capital
The WACC of Purepoint Uranium Group Inc (PTU.V) is 8.8%.
| Range | Selected | |
| Cost of equity | 5.7% - 12.0% | 8.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 12.0% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 12.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 12.0% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTU.V | Purepoint Uranium Group Inc | 0 | -0.17 | -0.17 |
| AMR.V | AM Resources Corp | 0.05 | -0.24 | -0.24 |
| BULL.CN | Canadian Palladium Resources Inc | 0.12 | -0.27 | -0.25 |
| CVV.V | CanAlaska Uranium Ltd | 0.01 | 1.82 | 1.81 |
| FUU.V | Fission 3.0 Corp | 0.1 | 1.31 | 1.22 |
| MGA.TO | Mega Uranium Ltd | 0 | 2.09 | 2.09 |
| PLU.V | Plateau Energy Metals Inc | 0 | 1.6 | 1.6 |
| SRI.V | Sparton Resources Inc | 0.07 | 1.34 | 1.28 |
| UWE.H.V | U3O8 Corp | 0.17 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | 0.31 | 1.27 |
| Relevered beta | 0.04 | 1.25 |
| Adjusted relevered beta | 0.36 | 1.17 |
PTU.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 PTU.V:
cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.