PWCO WACC - Weighted Average Cost of Capital
The WACC of PwrCor Inc (PWCO) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.3% | 6.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 7.1% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.21 | 0.34 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 7.1% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PWCO | PwrCor Inc | 0.06 | -1.77 | -1.69 |
| NKW.V | Oceanic Wind Energy Inc | 0 | -0.75 | -0.74 |
| NOVA | Sunnova Energy International Inc | 35299.69 | 1.89 | 0 |
| PSPW | 3Power Energy Group Inc | 9.15 | -1.67 | -0.22 |
| PSWW | Principal Solar Inc | 11.18 | -1.35 | -0.15 |
| RE.V | RE Royalties Ltd | 2.33 | 0.5 | 0.19 |
| SOLR.V | Solar Alliance Energy Inc | 0.06 | 0.87 | 0.83 |
| VVPR | VivoPower International PLC | 0.55 | -0.33 | -0.24 |
| 01C.WA | 01Cyberaton SA | 0.21 | 0.66 | 0.57 |
| IB.MI | Iniziative Bresciane Inbre SpA | 1.49 | 0.07 | 0.03 |
| Low | High | |
| Unlevered beta | -0.17 | 0.01 |
| Relevered beta | -0.18 | 0.01 |
| Adjusted relevered beta | 0.21 | 0.34 |
PWCO'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 PWCO:
cost_of_equity (6.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.21) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.