PULL.CN
Pure Extracts Technologies Corp
Price:  
0.01 
CAD
Volume:  
1,807,790.00
Canada | Oil, Gas & Consumable Fuels
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PULL.CN WACC - Weighted Average Cost of Capital

The WACC of Pure Extracts Technologies Corp (PULL.CN) is 9.0%.

The Cost of Equity of Pure Extracts Technologies Corp (PULL.CN) is 15.05%.
The Cost of Debt of Pure Extracts Technologies Corp (PULL.CN) is 7.00%.

Range Selected
Cost of equity 12.70% - 17.40% 15.05%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.1% - 9.8% 9.0%
WACC

PULL.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.87 2.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.70% 17.40%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1.61 1.61
Cost of debt 7.00% 7.00%
After-tax WACC 8.1% 9.8%
Selected WACC 9.0%

PULL.CN'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 PULL.CN:

cost_of_equity (15.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.87) + 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.