AN.V WACC - Weighted Average Cost of Capital
The WACC of Arena Minerals Inc (AN.V) is 8.0%.
| Range | Selected | |
| Cost of equity | 10.0% - 14.6% | 12.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 9.1% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.2 | 1.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 14.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 9.1% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AN.V | Arena Minerals Inc | 0 | 2.85 | 2.84 |
| APN.V | Altiplano Metals Inc | 0.19 | 1.1 | 0.97 |
| C.V | Contact Gold Corp | 0 | 0.79 | 0.79 |
| CMX.V | Chilean Metals Inc | 0.05 | 1.49 | 1.44 |
| COBC.V | Cobalt Blockchain Inc | 0.02 | 1.4 | 1.39 |
| EOX.TO | Euromax Resources Ltd | 2.85 | 0.26 | 0.08 |
| GRG.V | Golden Arrow Resources Corp | 0.03 | 1.67 | 1.64 |
| LL.V | Canada Rare Earth Corp | 0.54 | 0.96 | 0.69 |
| MIS.CN | Mistango River Resources Inc | 0.03 | 0.46 | 0.46 |
| NAM.V | New Age Metals Inc | 0.02 | -0.21 | -0.21 |
| RCLF.CN | Rockcliff Metals Corp | 0 | 1.29 | 1.29 |
| Low | High | |
| Unlevered beta | 0.79 | 1.29 |
| Relevered beta | 1.3 | 1.9 |
| Adjusted relevered beta | 1.2 | 1.6 |
AN.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 AN.V:
cost_of_equity (12.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.2) + 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.