ETR.CN
Etruscus Resources Corp
Price:  
0.1 
CAD
Volume:  
27,000
Canada | Mining

ETR.CN WACC - Weighted Average Cost of Capital

The WACC of Etruscus Resources Corp (ETR.CN) is 6.1%.

The Cost of Equity of Etruscus Resources Corp (ETR.CN) is 6.15%.
The Cost of Debt of Etruscus Resources Corp (ETR.CN) is 5%.

RangeSelected
Cost of equity4.7% - 7.6%6.15%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC4.7% - 7.5%6.1%
WACC

ETR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.310.56
Additional risk adjustments0.0%0.5%
Cost of equity4.7%7.6%
Tax rate25.9%26.5%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC4.7%7.5%
Selected WACC6.1%

ETR.CN'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 ETR.CN:

cost_of_equity (6.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.31) + 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.