FABL.CN
Fabled Copper Corp
Price:  
0.04 
CAD
Volume:  
66,870
Canada | Mining

FABL.CN WACC - Weighted Average Cost of Capital

The WACC of Fabled Copper Corp (FABL.CN) is 5.4%.

The Cost of Equity of Fabled Copper Corp (FABL.CN) is 7.2%.
The Cost of Debt of Fabled Copper Corp (FABL.CN) is 5%.

RangeSelected
Cost of equity6.4% - 8.0%7.2%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC5.0% - 5.8%5.4%
WACC

FABL.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.630.63
Additional risk adjustments0.0%0.5%
Cost of equity6.4%8.0%
Tax rate25.9%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.0%5.8%
Selected WACC5.4%

FABL.CN WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
FABL.CNFabled Copper Corp0.920.260.16
LowHigh
Unlevered beta0.160.16
Relevered beta0.450.45
Adjusted relevered beta0.630.63

FABL.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 FABL.CN:

cost_of_equity (7.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.