ASM.TO
Avino Silver & Gold Mines Ltd
Price:  
3.42 
CAD
Volume:  
27,146.00
Canada | Metals & Mining
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ASM.TO WACC - Weighted Average Cost of Capital

The WACC of Avino Silver & Gold Mines Ltd (ASM.TO) is 8.8%.

The Cost of Equity of Avino Silver & Gold Mines Ltd (ASM.TO) is 8.85%.
The Cost of Debt of Avino Silver & Gold Mines Ltd (ASM.TO) is 4.70%.

Range Selected
Cost of equity 7.60% - 10.10% 8.85%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 5.40% 4.70%
WACC 7.5% - 10.0% 8.8%
WACC

ASM.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.86 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 5.40%
After-tax WACC 7.5% 10.0%
Selected WACC 8.8%

ASM.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 ASM.TO:

cost_of_equity (8.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.