PVT.V
Pivotree Inc
Price:  
1.31 
CAD
Volume:  
17,000.00
Canada | IT Services
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PVT.V WACC - Weighted Average Cost of Capital

The WACC of Pivotree Inc (PVT.V) is 8.4%.

The Cost of Equity of Pivotree Inc (PVT.V) is 8.40%.
The Cost of Debt of Pivotree Inc (PVT.V) is 5.00%.

Range Selected
Cost of equity 7.40% - 9.40% 8.40%
Tax rate 6.00% - 8.40% 7.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.3% 8.4%
WACC

PVT.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.7 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.40%
Tax rate 6.00% 8.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.3%
Selected WACC 8.4%

PVT.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 PVT.V:

cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.