BBR.CN
Bam Bam Resources Corp
Price:  
0.24 
CAD
Volume:  
186,800
Canada | Mining

BBR.CN WACC - Weighted Average Cost of Capital

The WACC of Bam Bam Resources Corp (BBR.CN) is 7.5%.

The Cost of Equity of Bam Bam Resources Corp (BBR.CN) is 11.4%.
The Cost of Debt of Bam Bam Resources Corp (BBR.CN) is 5%.

RangeSelected
Cost of equity10.1% - 12.7%11.4%
Tax rate26.5% - 26.5%26.5%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.2%7.5%
WACC

BBR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.4%3.9%
Equity market risk premium4.7%5.7%
Adjusted beta1.431.45
Additional risk adjustments0.0%0.5%
Cost of equity10.1%12.7%
Tax rate26.5%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.9%8.2%
Selected WACC7.5%

BBR.CN'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 BBR.CN:

cost_of_equity (11.40%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.43) + 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.