BOLT.CN
Bolt Metals Corp
Price:  
0.01 
CAD
Volume:  
214,080
Canada | Metals & Mining

BOLT.CN WACC - Weighted Average Cost of Capital

The WACC of Bolt Metals Corp (BOLT.CN) is 8.0%.

The Cost of Equity of Bolt Metals Corp (BOLT.CN) is 12.25%.
The Cost of Debt of Bolt Metals Corp (BOLT.CN) is 5%.

RangeSelected
Cost of equity10.0% - 14.5%12.25%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 9.1%8.0%
WACC

BOLT.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta1.341.69
Additional risk adjustments0.0%0.5%
Cost of equity10.0%14.5%
Tax rate25.9%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.9%9.1%
Selected WACC8.0%

BOLT.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 BOLT.CN:

cost_of_equity (12.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.34) + 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.