CSO.V WACC - Weighted Average Cost of Capital
The WACC of Corsa Coal Corp (CSO.V) is 8.8%.
| Range | Selected | |
| Cost of equity | 10.3% - 14.5% | 12.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 9.4% | 8.2% |
| WACC | 7.4% - 10.2% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.26 | 1.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 14.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.29 | 1.29 |
| Cost of debt | 7.0% | 9.4% |
| After-tax WACC | 7.4% | 10.2% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CSO.V | Corsa Coal Corp | 1.29 | 1.51 | 0.78 |
| AMR | Alpha Metallurgical Resources Inc | 0 | 1.67 | 1.67 |
| ARG.TO | Amerigo Resources Ltd | 0.04 | 1.1 | 1.07 |
| CAD.V | Colonial Coal International Corp | 0 | 1.24 | 1.24 |
| CAF.V | Canaf Investments Inc | 0 | 0.62 | 0.62 |
| CNT.TO | Century Global Commodities Corp | 0.01 | 0.34 | 0.34 |
| FEO.V | Oceanic Iron Ore Corp | 0.34 | 1.1 | 0.88 |
| HCC | Warrior Met Coal Inc | 0.07 | 1.68 | 1.6 |
| METC | Ramaco Resources Inc | 0.17 | -0.01 | -0.01 |
| PVMCF | Pine Valley Mining Corp | 0.34 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.71 | 0.95 |
| Relevered beta | 1.39 | 1.85 |
| Adjusted relevered beta | 1.26 | 1.57 |
CSO.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 CSO.V:
cost_of_equity (12.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.26) + 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.