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 |
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.