CRE.V WACC - Weighted Average Cost of Capital

The WACC of Critical Elements Lithium Corp (CRE.V) is 11.5%.

The Cost of Equity of Critical Elements Lithium Corp (CRE.V) is 11.55%.

The Cost of Debt of Critical Elements Lithium Corp (CRE.V) is 5.00%.

	Range	Selected
Cost of equity	9.90% - 13.20%	11.55%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.9% - 13.2%	11.5%

WACC

CRE.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.18	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.20%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	9.9%	13.2%


Selected WACC	11.5%

CRE.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 CRE.V:

cost_of_equity (11.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.