ESK.V WACC - Weighted Average Cost of Capital

The WACC of Eskay Mining Corp (ESK.V) is 12.9%.

The Cost of Equity of Eskay Mining Corp (ESK.V) is 13.30%.

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

	Range	Selected
Cost of equity	11.40% - 15.20%	13.30%
Tax rate	-% - 0.10%	0.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	11.1% - 14.7%	12.9%

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	1.48	1.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	15.20%

Tax rate	-%	0.10%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.00%	5.00%

After-tax WACC	11.1%	14.7%


Selected WACC	12.9%

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 (13.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.48) + 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.