BOLT.CN WACC - Weighted Average Cost of Capital
The WACC of Bolt Metals Corp (BOLT.CN) is 8.0%.
| Range | Selected | |
| Cost of equity | 10.0% - 14.5% | 12.25% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 9.1% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.34 | 1.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 14.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 9.1% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOLT.CN | Bolt Metals Corp | 0.99 | 1.51 | 0.87 |
| CCOB | Century Cobalt Corp | 91.26 | 0 | 0 |
| GOM.V | Golden Dawn Minerals Inc | 0.32 | 1.64 | 1.33 |
| KMAX.V | OrganiMax Nutrient Corp | 0.01 | 1.05 | 1.04 |
| LBY.V | Liberty One Lithium Corp | 0.03 | 2.05 | 2.01 |
| LIT.V | Argentina Lithium & Energy Corp | 0.04 | 0.13 | 0.12 |
| MFM.V | Marifil Mines Ltd | 0.06 | 1.4 | 1.35 |
| PSE.CN | Pasinex Resources Ltd | 0.29 | -1.49 | -1.23 |
| QZM.V | Quartz Mountain Resources Ltd | 0 | 0.61 | 0.61 |
| VZZ.V | Val d Or Mining Corp | 0.08 | 1.12 | 1.06 |
| Z.V | Zinc One Resources Inc | 0.13 | 1.97 | 1.8 |
| Low | High | |
| Unlevered beta | 0.87 | 1.06 |
| Relevered beta | 1.51 | 2.03 |
| Adjusted relevered beta | 1.34 | 1.69 |
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.