EMX.V WACC - Weighted Average Cost of Capital

The WACC of EMX Royalty Corp (EMX.V) is 8.6%.

The Cost of Equity of EMX Royalty Corp (EMX.V) is 8.35%.

The Cost of Debt of EMX Royalty Corp (EMX.V) is 15.60%.

	Range	Selected
Cost of equity	6.40% - 10.30%	8.35%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	15.60% - 15.60%	15.60%
WACC	6.8% - 10.4%	8.6%

WACC

EMX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.5	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.30%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.08	0.08
Cost of debt	15.60%	15.60%

After-tax WACC	6.8%	10.4%


Selected WACC	8.6%

EMX.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 EMX.V:

cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.