The WACC of Cordoba Minerals Corp (CDB.V) is 10.0%.
Range | Selected | |
Cost of equity | 8.9% - 11.4% | 10.15% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.7% - 11.2% | 10.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.98 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.9% | 11.4% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 0.02 | 0.02 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.7% | 11.2% |
Selected WACC | 10.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CDB.V | Cordoba Minerals Corp | 0.02 | 2.78 | 2.73 |
AVL.TO | Avalon Advanced Materials Inc | 0.38 | 1.64 | 1.28 |
AZM.V | Azimut Exploration Inc | 0 | 1.14 | 1.13 |
ESM.TO | Euro Sun Mining Inc | 0.01 | 0.99 | 0.99 |
FT.TO | Fortune Minerals Ltd | 0.28 | 1.08 | 0.9 |
INV.TO | INV Metals Inc | 0.01 | 1.94 | 1.93 |
MAW.TO | Mawson Gold Ltd | 0.01 | 0.11 | 0.11 |
NKL.V | Nickel 28 Capital Corp | 1.05 | 1.54 | 0.87 |
OM.V | Osisko Metals Inc | 0.18 | 1.2 | 1.06 |
TSK.TO | Talisker Resources Ltd | 0.1 | 1.46 | 1.36 |
UCU.V | Ucore Rare Metals Inc | 0.08 | 0.88 | 0.83 |
Low | High | |
Unlevered beta | 0.99 | 1.13 |
Relevered beta | 0.97 | 1.1 |
Adjusted relevered beta | 0.98 | 1.07 |
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 CDB.V:
cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.