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 4.90%.

	Range	Selected
Cost of equity	10.70% - 13.40%	12.05%
Tax rate	4.10% - 5.80%	4.95%
Cost of debt	4.90% - 4.90%	4.90%
WACC	9.6% - 11.8%	10.7%

WACC

TAL.V WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.5%	6.5%
Adjusted beta	1.19	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.40%

Tax rate	4.10%	5.80%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.90%	4.90%

After-tax WACC	9.6%	11.8%


Selected WACC	10.7%

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.