PXI.V
Planet Ventures Inc
Price:  
0.03 
CAD
Volume:  
275,300.00
Canada | Capital Markets
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PXI.V WACC - Weighted Average Cost of Capital

The WACC of Planet Ventures Inc (PXI.V) is 7.2%.

The Cost of Equity of Planet Ventures Inc (PXI.V) is 7.75%.
The Cost of Debt of Planet Ventures Inc (PXI.V) is 5.00%.

Range Selected
Cost of equity 5.90% - 9.60% 7.75%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 8.9% 7.2%
WACC

PXI.V WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.33 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 9.60%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.14 0.14
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 8.9%
Selected WACC 7.2%

PXI.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 PXI.V:

cost_of_equity (7.75%) = risk_free_rate (4.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.