BCU.V WACC - Weighted Average Cost of Capital
The WACC of Bell Copper Corp (BCU.V) is 8.9%.
| Range | Selected | |
| Cost of equity | 11.3% - 17.1% | 14.2% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.4% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.45 | 2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 17.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BCU.V | Bell Copper Corp | 1.12 | 1.52 | 0.84 |
| ERO.TO | Ero Copper Corp | 0.42 | 2.05 | 1.57 |
| FCX | Freeport-McMoRan Inc | 0.14 | 1.77 | 1.61 |
| III.TO | Imperial Metals Corp | 0.53 | 1.43 | 1.03 |
| JOSE.TO | Josemaria Resources Inc | 0.06 | 1.47 | 1.41 |
| MARI.TO | Marimaca Copper Corp | 0 | 0.7 | 0.7 |
| SRHI.TO | SRHI Inc | 6.48 | 1.85 | 0.32 |
| SURG.V | Surge Copper Corp | 0 | 1.49 | 1.49 |
| TM.V | Trigon Metals Inc | 0.36 | 1.1 | 0.87 |
| WCC.V | Consolidated Woodjam Copper Corp | 0.01 | 1.74 | 1.73 |
| Low | High | |
| Unlevered beta | 0.97 | 1.44 |
| Relevered beta | 1.67 | 2.49 |
| Adjusted relevered beta | 1.45 | 2 |
BCU.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 BCU.V:
cost_of_equity (14.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.45) + 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.