EMO.V WACC - Weighted Average Cost of Capital
The WACC of Emerita Resources Corp (EMO.V) is 10.1%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.5% | 10.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 12.4% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.77 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 12.4% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EMO.V | Emerita Resources Corp | 0.02 | 0.47 | 0.47 |
| BRO.V | Barksdale Resources Corp | 0.09 | 1.45 | 1.36 |
| ECU.V | Element 29 Resources Inc | 0 | 0.53 | 0.53 |
| GLDC.V | Cassiar Gold Corp | 0 | 1.6 | 1.6 |
| GLDL.V | Gold Line Resources Ltd | 0.03 | -0.37 | -0.36 |
| GTCH.CN | Getchell Gold Corp | 0.11 | 1.5 | 1.39 |
| MMA.V | Midnight Sun Mining Corp | 0 | 1.5 | 1.49 |
| RDG.V | Ridgeline Minerals Corp | 0.01 | 0.73 | 0.73 |
| TAU.V | Thesis Gold Inc | 0 | 1.53 | 1.52 |
| VNUE | VNUE Inc | 2.07 | -0.71 | -0.28 |
| Low | High | |
| Unlevered beta | 0.65 | 1.37 |
| Relevered beta | 0.66 | 1.39 |
| Adjusted relevered beta | 0.77 | 1.26 |
EMO.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 EMO.V:
cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.