EXN.TO
Excellon Resources Inc
Price:  
0.37 
CAD
Volume:  
1,447,958
Canada | Metals & Mining

EXN.TO WACC - Weighted Average Cost of Capital

The WACC of Excellon Resources Inc (EXN.TO) is 10.4%.

The Cost of Equity of Excellon Resources Inc (EXN.TO) is 11.8%.
The Cost of Debt of Excellon Resources Inc (EXN.TO) is 5%.

RangeSelected
Cost of equity9.8% - 13.8%11.8%
Tax rate10.6% - 11.9%11.25%
Cost of debt5.0% - 5.0%5%
WACC8.8% - 12.0%10.4%
WACC

EXN.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta1.31.59
Additional risk adjustments0.0%0.5%
Cost of equity9.8%13.8%
Tax rate10.6%11.9%
Debt/Equity ratio
0.240.24
Cost of debt5.0%5.0%
After-tax WACC8.8%12.0%
Selected WACC10.4%

EXN.TO'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 EXN.TO:

cost_of_equity (11.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.3) + 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.