SDE.V
Spartan Delta Corp
Price:  
8.18 
CAD
Volume:  
230,220.00
Canada | Oil, Gas & Consumable Fuels
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SDE.V WACC - Weighted Average Cost of Capital

The WACC of Spartan Delta Corp (SDE.V) is 8.9%.

The Cost of Equity of Spartan Delta Corp (SDE.V) is 12.25%.
The Cost of Debt of Spartan Delta Corp (SDE.V) is 5.00%.

Range Selected
Cost of equity 10.30% - 14.20% 12.25%
Tax rate 2.70% - 5.30% 4.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 9.9% 8.9%
WACC

SDE.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.5 1.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 14.20%
Tax rate 2.70% 5.30%
Debt/Equity ratio 0.83 0.83
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 9.9%
Selected WACC 8.9%

SDE.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 SDE.V:

cost_of_equity (12.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.5) + 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.