AAN.V WACC - Weighted Average Cost of Capital
The WACC of Aton Resources Inc (AAN.V) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.8% | 7.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 8.1% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.43 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 8.1% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AAN.V | Aton Resources Inc | 0.39 | -0.27 | -0.21 |
| AFF.V | Affinity Metals Corp | 0.1 | 0.27 | 0.25 |
| BAY.V | Aston Bay Holdings Ltd | 0.04 | 1.28 | 1.24 |
| CBA.V | Champion Bear Resources Ltd | 0.17 | -2.02 | -1.8 |
| CMD.V | Commander Resources Ltd | 0.01 | 0.65 | 0.64 |
| MAC.V | THEMAC Resources Group Ltd | 31.43 | 1.9 | 0.08 |
| RMD.V | Richmond Minerals Inc | 0.17 | -0.08 | -0.08 |
| SZM.V | ScoZinc Mining Ltd | 0 | 1.87 | 1.86 |
| XMG.CN | MGX Minerals Inc | 0.52 | 1.46 | 1.05 |
| Low | High | |
| Unlevered beta | 0.11 | 0.56 |
| Relevered beta | 0.15 | 0.73 |
| Adjusted relevered beta | 0.43 | 0.82 |
AAN.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 AAN.V:
cost_of_equity (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.