EDR.TO
Endeavour Silver Corp
Price:  
4.55 
CAD
Volume:  
369,449.00
Canada | Metals & Mining
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EDR.TO WACC - Weighted Average Cost of Capital

The WACC of Endeavour Silver Corp (EDR.TO) is 8.2%.

The Cost of Equity of Endeavour Silver Corp (EDR.TO) is 8.25%.
The Cost of Debt of Endeavour Silver Corp (EDR.TO) is 11.15%.

Range Selected
Cost of equity 6.80% - 9.70% 8.25%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 6.80% - 15.50% 11.15%
WACC 6.6% - 9.9% 8.2%
WACC

EDR.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.71 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.70%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.13 0.13
Cost of debt 6.80% 15.50%
After-tax WACC 6.6% 9.9%
Selected WACC 8.2%

EDR.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 EDR.TO:

cost_of_equity (8.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.