ENRT WACC - Weighted Average Cost of Capital
The WACC of Enertopia Corp (ENRT) is 6.4%.
| Range | Selected | |
| Cost of equity | 7.2% - 11.1% | 9.15% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.73 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 11.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENRT | Enertopia Corp | 0.98 | -0.02 | -0.01 |
| APN.V | Altiplano Metals Inc | 0.19 | 1.21 | 1.06 |
| BHS.V | Bayhorse Silver Inc | 0.04 | 0.92 | 0.9 |
| C.V | Contact Gold Corp | 0 | 0.79 | 0.79 |
| COBC.V | Cobalt Blockchain Inc | 0.02 | 1.4 | 1.39 |
| EOX.TO | Euromax Resources Ltd | 2.85 | 0.26 | 0.08 |
| KWG.CN | KWG Resources Inc | 1.19 | 1.11 | 0.59 |
| MRZ.V | Mirasol Resources Ltd | 0 | 0.48 | 0.48 |
| NIM.V | Nicola Mining Inc | 0.07 | 0.14 | 0.14 |
| QMC.V | Qmc Quantum Minerals Corp | 0.03 | -1.35 | -1.32 |
| VRB.V | Vanadiumcorp Resource Inc | 0.5 | -0.17 | -0.12 |
| Low | High | |
| Unlevered beta | 0.14 | 0.59 |
| Relevered beta | 0.6 | 1.16 |
| Adjusted relevered beta | 0.73 | 1.11 |
ENRT'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 ENRT:
cost_of_equity (9.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.