Protech Home Medical Corp (PTQ.V) WACC Analysis

As of May 25, 2025, Protech Home Medical Corp (PTQ.V) carries a Weighted Average Cost of Capital (WACC) of 6.6%. WACC reflects the blended rate Protech Home Medical Corp must pay to both equity and debt holders.

Within that, the cost of equity is 5.2%, the cost of debt is 5.0%, and the effective tax rate is 2.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.33 – 0.66
• Additional risk adjustment: 0.5% – 1.0%
• Debt-to-equity ratio: 0.15

What It Means for Investors

With a selected WACC of 6.6%, Protech Home Medical Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.