ALS.TO WACC - Weighted Average Cost of Capital

The WACC of Altius Minerals Corp (ALS.TO) is 8.9%.

The Cost of Equity of Altius Minerals Corp (ALS.TO) is 9.35%.

The Cost of Debt of Altius Minerals Corp (ALS.TO) is 5.70%.

	Range	Selected
Cost of equity	7.30% - 11.40%	9.35%
Tax rate	20.40% - 27.90%	24.15%
Cost of debt	5.40% - 6.00%	5.70%
WACC	7.0% - 10.8%	8.9%

WACC

ALS.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.81	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.40%

Tax rate	20.40%	27.90%
Debt/Equity ratio	0.09	0.09
Cost of debt	5.40%	6.00%

After-tax WACC	7.0%	10.8%


Selected WACC	8.9%

ALS.TO'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 ALS.TO:

cost_of_equity (9.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.