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    • SDE.TO
    Spartan Delta Corp
    Price:  
    3.01 
    CAD
    Volume:  
    65,100
    Canada | Oil, Gas & Consumable Fuels
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    Earnings Power Value
    Dividend Discount Model
    WACC
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    SDE.TO WACC - Weighted Average Cost of Capital

    The WACC of Spartan Delta Corp (SDE.TO) is 10.0%.

    The Cost of Equity of Spartan Delta Corp (SDE.TO) is 10.85%.
    The Cost of Debt of Spartan Delta Corp (SDE.TO) is 7.4%.

    RangeSelected
    Cost of equity9.5% - 12.2%10.85%
    Tax rate9.5% - 13.5%11.5%
    Cost of debt6.3% - 8.5%7.4%
    WACC8.7% - 11.3%10.0%
    WACC

    SDE.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.241.32
    Additional risk adjustments0.0%0.5%
    Cost of equity9.5%12.2%
    Tax rate9.5%13.5%
    Debt/Equity ratio
    		0.240.24
    Cost of debt6.3%8.5%
    After-tax WACC8.7%11.3%
    Selected WACC10.0%

    SDE.TO'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 SDE.TO:

    cost_of_equity (10.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.24) + 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.