ESK.V WACC - Weighted Average Cost of Capital

The WACC of Eskay Mining Corp (ESK.V) is 11.7%.

The Cost of Equity of Eskay Mining Corp (ESK.V) is 18.30%.

The Cost of Debt of Eskay Mining Corp (ESK.V) is 5.00%.

	Range	Selected
Cost of equity	15.20% - 21.40%	18.30%
Tax rate	-% - 0.10%	0.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.1% - 13.2%	11.7%

WACC

ESK.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.22	2.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	21.40%

Tax rate	-%	0.10%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	10.1%	13.2%


Selected WACC	11.7%

ESK.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 ESK.V:

cost_of_equity (18.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (2.22) + 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.