EDV.TO
Endeavour Mining Corp
Price:  
42.02 
CAD
Volume:  
218,975.00
United Kingdom | Metals & Mining
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EDV.TO WACC - Weighted Average Cost of Capital

The WACC of Endeavour Mining Corp (EDV.TO) is 9.6%.

The Cost of Equity of Endeavour Mining Corp (EDV.TO) is 10.55%.
The Cost of Debt of Endeavour Mining Corp (EDV.TO) is 5.00%.

Range Selected
Cost of equity 9.00% - 12.10% 10.55%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.3% - 11.0% 9.6%
WACC

EDV.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.14 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 12.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 5.00%
After-tax WACC 8.3% 11.0%
Selected WACC 9.6%

EDV.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 EDV.TO:

cost_of_equity (10.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.