CS.TO WACC - Weighted Average Cost of Capital

The WACC of Capstone Mining Corp (CS.TO) is 9.5%.

The Cost of Equity of Capstone Mining Corp (CS.TO) is 10.35%.

The Cost of Debt of Capstone Mining Corp (CS.TO) is 9.45%.

	Range	Selected
Cost of equity	8.70% - 12.00%	10.35%
Tax rate	29.00% - 32.10%	30.55%
Cost of debt	4.60% - 14.30%	9.45%
WACC	7.6% - 11.5%	9.5%

WACC

CS.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.09	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.00%

Tax rate	29.00%	32.10%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.60%	14.30%

After-tax WACC	7.6%	11.5%


Selected WACC	9.5%

CS.TO'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 CS.TO:

cost_of_equity (10.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.09) + 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.