ATY.V WACC - Weighted Average Cost of Capital

The WACC of Atico Mining Corp (ATY.V) is 5.9%.

The Cost of Equity of Atico Mining Corp (ATY.V) is 8.15%.

The Cost of Debt of Atico Mining Corp (ATY.V) is 7.05%.

	Range	Selected
Cost of equity	6.90% - 9.40%	8.15%
Tax rate	25.90% - 42.80%	34.35%
Cost of debt	5.30% - 8.80%	7.05%
WACC	5.1% - 6.8%	5.9%

WACC

ATY.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.59	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.40%

Tax rate	25.90%	42.80%
Debt/Equity ratio	1.53	1.53
Cost of debt	5.30%	8.80%

After-tax WACC	5.1%	6.8%


Selected WACC	5.9%

ATY.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 ATY.V:

cost_of_equity (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.