AOT.TO
Ascot Resources Ltd
Price:  
0.05 
CAD
Volume:  
1,858,152.00
Canada | Metals & Mining
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AOT.TO WACC - Weighted Average Cost of Capital

The WACC of Ascot Resources Ltd (AOT.TO) is 7.9%.

The Cost of Equity of Ascot Resources Ltd (AOT.TO) is 10.75%.
The Cost of Debt of Ascot Resources Ltd (AOT.TO) is 5.50%.

Range Selected
Cost of equity 9.10% - 12.40% 10.75%
Tax rate 2.30% - 5.00% 3.65%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.4% - 9.4% 7.9%
WACC

AOT.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.18 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.40%
Tax rate 2.30% 5.00%
Debt/Equity ratio 1.12 1.12
Cost of debt 4.00% 7.00%
After-tax WACC 6.4% 9.4%
Selected WACC 7.9%

AOT.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 AOT.TO:

cost_of_equity (10.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.