Phoenix Canada Oil Company Ltd (PCO.V) WACC Analysis

As of June 21, 2025, Phoenix Canada Oil Company Ltd (PCO.V) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate Phoenix Canada Oil Company Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 8.4%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 0.76 – 1.8
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 8.1%, Phoenix Canada Oil Company Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.