PWR.CN
Captiva Verde Land Corp
Price:  
0.04 
CAD
Volume:  
191,650
Canada | Real Estate Rental and Leasing

PWR.CN WACC - Weighted Average Cost of Capital

The WACC of Captiva Verde Land Corp (PWR.CN) is 4.6%.

The Cost of Equity of Captiva Verde Land Corp (PWR.CN) is 5.45%.
The Cost of Debt of Captiva Verde Land Corp (PWR.CN) is 5%.

RangeSelected
Cost of equity4.7% - 6.2%5.45%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC4.2% - 5.0%4.6%
WACC

PWR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.30.34
Additional risk adjustments0.0%0.5%
Cost of equity4.7%6.2%
Tax rate25.9%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.2%5.0%
Selected WACC4.6%

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.