FSY.TO
Forsys Metals Corp
Price:  
0.52 
CAD
Volume:  
97,315
Canada | Oil, Gas & Consumable Fuels

FSY.TO WACC - Weighted Average Cost of Capital

The WACC of Forsys Metals Corp (FSY.TO) is 8.5%.

The Cost of Equity of Forsys Metals Corp (FSY.TO) is 12.05%.
The Cost of Debt of Forsys Metals Corp (FSY.TO) is 5%.

RangeSelected
Cost of equity7.7% - 16.4%12.05%
Tax rate0.6% - 1.4%1%
Cost of debt5.0% - 5.0%5%
WACC6.3% - 10.7%8.5%
WACC

FSY.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.892.01
Additional risk adjustments0.0%0.5%
Cost of equity7.7%16.4%
Tax rate0.6%1.4%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.3%10.7%
Selected WACC8.5%

FSY.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 FSY.TO:

cost_of_equity (12.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.