TCF.CN WACC - Weighted Average Cost of Capital

The WACC of Trillion Energy International Inc (TCF.CN) is 40.3%.

The Cost of Equity of Trillion Energy International Inc (TCF.CN) is 10.10%.

The Cost of Debt of Trillion Energy International Inc (TCF.CN) is 62.65%.

	Range	Selected
Cost of equity	9.00% - 11.20%	10.10%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	4.10% - 121.20%	62.65%
WACC	4.0% - 76.6%	40.3%

WACC

TCF.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.15	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.20%

Tax rate	25.90%	26.50%
Debt/Equity ratio	5.27	5.27
Cost of debt	4.10%	121.20%

After-tax WACC	4.0%	76.6%


Selected WACC	40.3%

TCF.CN'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 TCF.CN:

cost_of_equity (10.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.15) + 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.