CRTS.V WACC - Weighted Average Cost of Capital
The WACC of Cortus Metals Inc (CRTS.V) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.6% | 10.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 10.4% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.92 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 10.4% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRTS.V | Cortus Metals Inc | 0.16 | -0.37 | -0.33 |
| AAX.V | Advance Gold Corp | 0.03 | 1.15 | 1.13 |
| ACP.V | ArcPacific Resources Corp | 0.03 | 0.96 | 0.94 |
| FTJ.V | Fort St James Nickel Corp | 0.16 | -0.07 | -0.06 |
| GGX.V | Ggx Gold Corp | 0.6 | -1.61 | -1.12 |
| GOFF | Goff Corp | 0.84 | 1.39 | 0.86 |
| MUR.V | Murchison Minerals Ltd | 0.01 | -0.69 | -0.68 |
| RTM.V | RT Minerals Corp | 0.12 | -1.99 | -1.83 |
| STH.V | Stelmine Canada Ltd | 0.07 | 2.89 | 2.74 |
| VC.CN | Volatus Capital Corp | 0.09 | -4.32 | -4.07 |
| Low | High | |
| Unlevered beta | -0.47 | 0.31 |
| Relevered beta | 0.88 | 1.13 |
| Adjusted relevered beta | 0.92 | 1.09 |
CRTS.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 CRTS.V:
cost_of_equity (10.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.