FRMA WACC - Weighted Average Cost of Capital
The WACC of Firma Holdings Corp (FRMA) is 5.5%.
| Range | Selected | |
| Cost of equity | 92.8% - 215.6% | 154.2% |
| Tax rate | 14.2% - 29.6% | 21.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.2% - 6.8% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 19.34 | 37.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 92.8% | 215.6% |
| Tax rate | 14.2% | 29.6% |
| Debt/Equity ratio | 109.28 | 109.28 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.2% | 6.8% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FRMA | Firma Holdings Corp | 109.28 | -99.17 | -1.06 |
| APN.V | Altiplano Metals Inc | 0.19 | 1.1 | 0.95 |
| C.V | Contact Gold Corp | 0 | 0.79 | 0.79 |
| COBC.V | Cobalt Blockchain Inc | 0.02 | 1.4 | 1.38 |
| EOX.TO | Euromax Resources Ltd | 2.85 | 0.26 | 0.08 |
| KWG.CN | KWG Resources Inc | 1.19 | 1.11 | 0.55 |
| LL.V | Canada Rare Earth Corp | 0.54 | 0.96 | 0.66 |
| MIS.CN | Mistango River Resources Inc | 0.03 | 0.46 | 0.45 |
| NAM.V | New Age Metals Inc | 0.02 | -0.21 | -0.21 |
| QMC.V | Qmc Quantum Minerals Corp | 0.03 | -1.31 | -1.27 |
| VRB.V | Vanadiumcorp Resource Inc | 0.48 | -0.2 | -0.14 |
| Low | High | |
| Unlevered beta | 0.08 | 0.55 |
| Relevered beta | 28.37 | 55.67 |
| Adjusted relevered beta | 19.34 | 37.63 |
FRMA'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 FRMA:
cost_of_equity (154.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (19.34) + 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.