EPL.V WACC - Weighted Average Cost of Capital
The WACC of Eagle Plains Resources Ltd (EPL.V) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.3% - 11.7% | 9.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.7% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.68 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 11.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.7% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EPL.V | Eagle Plains Resources Ltd | 1.03 | -0.04 | -0.03 |
| AB.H.V | Asbestos Corp Ltd | 10.99 | 0.26 | 0.03 |
| BEX.V | Benton Resources Inc | 0 | 1.27 | 1.27 |
| COR.V | Camino Minerals Corp | 0 | 0.69 | 0.69 |
| DJI.V | Dajin Resources Corp | 0.01 | 0.42 | 0.42 |
| LL.V | Canada Rare Earth Corp | 0.54 | 0.96 | 0.69 |
| MRO.V | Millrock Resources Inc | 0.07 | 0.01 | 0.01 |
| NI.CN | Victory Nickel Inc | 11.35 | 1.17 | 0.13 |
| SNS.V | Select Sands Corp | 38.5 | 1.64 | 0.06 |
| VIO.V | Vior Inc | 0 | 0.68 | 0.67 |
| WCC.V | Consolidated Woodjam Copper Corp | 0.01 | 1.74 | 1.73 |
| Low | High | |
| Unlevered beta | 0.13 | 0.67 |
| Relevered beta | 0.52 | 1.18 |
| Adjusted relevered beta | 0.68 | 1.12 |
EPL.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 EPL.V:
cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.