FF.TO
First Mining Gold Corp
Price:  
0.16 
CAD
Volume:  
70,851.00
Canada | Metals & Mining
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FF.TO WACC - Weighted Average Cost of Capital

The WACC of First Mining Gold Corp (FF.TO) is 9.4%.

The Cost of Equity of First Mining Gold Corp (FF.TO) is 9.40%.
The Cost of Debt of First Mining Gold Corp (FF.TO) is 5.00%.

Range Selected
Cost of equity 7.70% - 11.10% 9.40%
Tax rate 3.50% - 7.50% 5.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 11.0% 9.4%
WACC

FF.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.9 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.10%
Tax rate 3.50% 7.50%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 11.0%
Selected WACC 9.4%

FF.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 FF.TO:

cost_of_equity (9.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.9) + 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.