A.V WACC - Weighted Average Cost of Capital
The WACC of Armor Minerals Inc (A.V) is 4.4%.
| Range | Selected | |
| Cost of equity | 3.6% - 6.6% | 5.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.6% - 5.1% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | -0.1 | 0.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.6% | 6.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.6% | 5.1% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| A.V | Armor Minerals Inc | 0.98 | -0.31 | -0.18 |
| AIR.V | Clean Air Metals Inc | 0 | 2.92 | 2.92 |
| AMLM | American Lithium Minerals Inc | 0.14 | 1.5 | 1.36 |
| BBB.V | Brixton Metals Corp | 0 | 0.4 | 0.4 |
| BHLL | Bunker Hill Mining Corp | 1.06 | -0.83 | -0.47 |
| CD.V | Cantex Mine Development Corp | 0.01 | -0.21 | -0.21 |
| FWZ.V | Fireweed Zinc Ltd | 0 | 0.85 | 0.85 |
| LBSR | Liberty Star Uranium & Metals Corp | 0.2 | 0.19 | 0.17 |
| NWX.V | Newport Exploration Ltd | 0 | 1.05 | 1.05 |
| PERU.V | Chakana Copper Corp | 0.06 | 1.84 | 1.76 |
| SVB.TO | Silver Bull Resources Inc | 0.88 | -0.55 | -0.34 |
| Low | High | |
| Unlevered beta | 0.17 | 0.85 |
| Relevered beta | -0.64 | -0.18 |
| Adjusted relevered beta | -0.1 | 0.21 |
A.V'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 A.V:
cost_of_equity (5.10%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (-0.1) + 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.