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    • TVE.TO
    Tamarack Valley Energy Ltd
    Price:  
    4.35 
    CAD
    Volume:  
    1,381,646
    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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    TVE.TO WACC - Weighted Average Cost of Capital

    The WACC of Tamarack Valley Energy Ltd (TVE.TO) is 9.3%.

    The Cost of Equity of Tamarack Valley Energy Ltd (TVE.TO) is 10.9%.
    The Cost of Debt of Tamarack Valley Energy Ltd (TVE.TO) is 6.4%.

    RangeSelected
    Cost of equity9.4% - 12.4%10.9%
    Tax rate22.5% - 23.4%22.95%
    Cost of debt4.4% - 8.4%6.4%
    WACC7.8% - 10.8%9.3%
    WACC

    TVE.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.221.34
    Additional risk adjustments0.0%0.5%
    Cost of equity9.4%12.4%
    Tax rate22.5%23.4%
    Debt/Equity ratio
    		0.350.35
    Cost of debt4.4%8.4%
    After-tax WACC7.8%10.8%
    Selected WACC9.3%

    TVE.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 TVE.TO:

    cost_of_equity (10.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.22) + 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.