PULL.CN WACC - Weighted Average Cost of Capital
The WACC of Pure Extracts Technologies Corp (PULL.CN) is 8.6%.
| Range | Selected | |
| Cost of equity | 12.1% - 16.4% | 14.25% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.8% - 9.5% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.75 | 2.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.1% | 16.4% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1.61 | 1.61 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.8% | 9.5% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PULL.CN | Pure Extracts Technologies Corp | 1.61 | -0.84 | -0.38 |
| ARX.TO | ARC Resources Ltd | 0.15 | 1.16 | 1.05 |
| CNQ.TO | Canadian Natural Resources Ltd | 0.22 | 0.99 | 0.85 |
| CPG.TO | Crescent Point Energy Corp | 0.57 | 1.1 | 0.77 |
| MEG.TO | MEG Energy Corp | 0.16 | 1.73 | 1.54 |
| PSK.TO | Prairiesky Royalty Ltd | 0.02 | 1.12 | 1.11 |
| PXT.TO | Parex Resources Inc | 0.06 | 1.6 | 1.53 |
| TOU.TO | Tourmaline Oil Corp | 0.06 | 0.79 | 0.76 |
| WCP.TO | Whitecap Resources Inc | 0.1 | 1.55 | 1.45 |
| IPCO.ST | International Petroleum Corp | 0.24 | 1.41 | 1.2 |
| Low | High | |
| Unlevered beta | 0.97 | 1.15 |
| Relevered beta | 2.12 | 2.51 |
| Adjusted relevered beta | 1.75 | 2.01 |
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 (14.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.75) + 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.