Question 1

What is Prairie Operating Co. Common Stock's WACC?

Accepted Answer

Prairie Operating Co. Common Stock (PROP) has a Weighted Average Cost of Capital (WACC) of 7.54%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.08%, with an equity weight of 77.78% in the capital structure.

Question 2

Is Prairie Operating Co. Common Stock's WACC high or low?

Accepted Answer

Prairie Operating Co. Common Stock's WACC of 7.54% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Prairie Operating Co. Common Stock's WACC calculated?

Accepted Answer

Prairie Operating Co. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.08%. The capital structure is 77.78% equity and 22.22% debt.

Prairie Operating Co. Common Stock (PROP) — WACC 分析

WACC 构成

解读

Prairie Operating Co. Common Stock（PROP）WACC：7.54%

WACC计算器

Prairie Operating Co. Common Stock（PROP） WACC 解读

PROP 公司分析

PROP DCF 估值

继续做同行对比