EDR.TO WACC - Weighted Average Cost of Capital

The WACC of Endeavour Silver Corp (EDR.TO) is 7.8%.

The Cost of Equity of Endeavour Silver Corp (EDR.TO) is 7.60%.

The Cost of Debt of Endeavour Silver Corp (EDR.TO) is 13.60%.

	Range	Selected
Cost of equity	5.60% - 9.60%	7.60%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	11.70% - 15.50%	13.60%
WACC	5.9% - 9.7%	7.8%

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	0.48	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	9.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.12	0.12
Cost of debt	11.70%	15.50%

After-tax WACC	5.9%	9.7%


Selected WACC	7.8%

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 (7.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.