Crescent Point Energy Corp (CPG.TO) WACC Analysis

As of May 31, 2025, Crescent Point Energy Corp (CPG.TO) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate Crescent Point Energy Corp must pay to both equity and debt holders.

Within that, the cost of equity is 8.7%, the cost of debt is 4.1%, and the effective tax rate is 25.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.3% – 3.8%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.06 – 1.09
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.57

What It Means for Investors

With a selected WACC of 7.5%, Crescent Point Energy Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.