AMX.V WACC - Weighted Average Cost of Capital
The WACC of Amex Exploration Inc (AMX.V) is 8.6%.
| Range | Selected | |
| Cost of equity | 10.3% - 16.7% | 13.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.0% - 10.2% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.26 | 1.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 16.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.0% | 10.2% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AMX.V | Amex Exploration Inc | 0.82 | 1.45 | 0.91 |
| BNAU.TO | Battle North Gold Corp | 0 | 1.74 | 1.74 |
| FF.TO | First Mining Gold Corp | 0 | 0.57 | 0.57 |
| GSV.TO | Gold Standard Ventures Corp | 0 | 0.81 | 0.81 |
| ITR.V | Integra Resources Corp | 0.03 | 1.45 | 1.41 |
| LIO.V | Lion One Metals Ltd | 0.44 | 1.83 | 1.38 |
| ME.TO | Moneta Porcupine Mines Inc | 0 | 0.59 | 0.59 |
| MKO.V | Mako Mining Corp | 0.02 | 0.82 | 0.8 |
| ROS.V | Roscan Gold Corp | 0.05 | 1.73 | 1.67 |
| STAL | Star Alliance International Corp | 3.91 | -0.12 | -0.03 |
| TLG.TO | Troilus Gold Corp | 0 | 1.75 | 1.75 |
| Low | High | |
| Unlevered beta | 0.81 | 1.38 |
| Relevered beta | 1.39 | 2.42 |
| Adjusted relevered beta | 1.26 | 1.95 |
AMX.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 AMX.V:
cost_of_equity (13.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.26) + 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.