CSS.CN
Cascada Silver Corp
Price:  
0.01 
CAD
Volume:  
163,920.00
Canada | N/A
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CSS.CN WACC - Weighted Average Cost of Capital

The WACC of Cascada Silver Corp (CSS.CN) is 12.3%.

The Cost of Equity of Cascada Silver Corp (CSS.CN) is 20.95%.
The Cost of Debt of Cascada Silver Corp (CSS.CN) is 5.00%.

Range Selected
Cost of equity 18.90% - 23.00% 20.95%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.3% - 13.3% 12.3%
WACC

CSS.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 3.09 3.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.90% 23.00%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 11.3% 13.3%
Selected WACC 12.3%

CSS.CN'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 CSS.CN:

cost_of_equity (20.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.09) + 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.