PWR.CN WACC - Weighted Average Cost of Capital
The WACC of Captiva Verde Land Corp (PWR.CN) is 4.6%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.2% | 5.45% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 5.0% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.3 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 5.0% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PWR.CN | Captiva Verde Land Corp | 1.12 | 1.03 | 0.57 |
| ASAV | ASI Aviation Inc | 0.35 | 1.08 | 0.86 |
| FGNV | Forge Innovation Development Corp | 1.07 | -0.05 | -0.03 |
| HBUV | Hubilu Venture Corporation | 0.64 | 0 | 0 |
| IDVV | International Endeavors Corp | 0.39 | -1.63 | -1.26 |
| PTCO | PetroGas Co | 0.31 | -1.09 | -0.89 |
| RCO.UN.TO | Middlefield Can-Global REIT Income Fund | 0.05 | 0.92 | 0.89 |
| RLP.V | Realia Properties Inc | 8.85 | 0.15 | 0.02 |
| RPP.V | Regent Pacific Properties Inc | 8.5 | -0.53 | -0.07 |
| WKSP | Worksport Ltd | 0.38 | 1.63 | 1.28 |
| XALL | Xalles Holdings Inc | 48.13 | -1.04 | -0.03 |
| Low | High | |
| Unlevered beta | -0.03 | 0.02 |
| Relevered beta | -0.04 | 0.01 |
| Adjusted relevered beta | 0.3 | 0.34 |
PWR.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 PWR.CN:
cost_of_equity (5.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.3) + 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.