TAL.V
Petrotal Corp
Price:  
0.73 
CAD
Volume:  
640,556
United States | Oil, Gas & Consumable Fuels

TAL.V WACC - Weighted Average Cost of Capital

The WACC of Petrotal Corp (TAL.V) is 10.7%.

The Cost of Equity of Petrotal Corp (TAL.V) is 12.05%.
The Cost of Debt of Petrotal Corp (TAL.V) is 4.9%.

RangeSelected
Cost of equity10.7% - 13.4%12.05%
Tax rate4.1% - 5.8%4.95%
Cost of debt4.9% - 4.9%4.9%
WACC9.6% - 11.8%10.7%
WACC

TAL.V WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.5%6.5%
Adjusted beta1.191.27
Additional risk adjustments0.0%0.5%
Cost of equity10.7%13.4%
Tax rate4.1%5.8%
Debt/Equity ratio
0.220.22
Cost of debt4.9%4.9%
After-tax WACC9.6%11.8%
Selected WACC10.7%

TAL.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 TAL.V:

cost_of_equity (12.05%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (1.19) + 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.