HUD.V WACC - Weighted Average Cost of Capital
The WACC of Hudson Resources Inc (HUD.V) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.7% | 10% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 11.4% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.87 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 11.4% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HUD.V | Hudson Resources Inc | 0.04 | 0.64 | 0.62 |
| BMET.V | BeMetals Corp | 0.97 | 0.32 | 0.19 |
| CNX.V | Callinex Mines Inc | 0 | 0.15 | 0.15 |
| CUR.V | International Consolidated Uranium Inc | 0 | 1.69 | 1.69 |
| GMA.V | Geomega Resources Inc | 0.13 | 2.51 | 2.3 |
| NRM.V | Noram Ventures Inc | 0.01 | -2.71 | -2.7 |
| NZC.TO | Norzinc Ltd | 0 | 1.57 | 1.57 |
| SMD.V | Strategic Metals Ltd | 0 | 0.89 | 0.89 |
| SVB.TO | Silver Bull Resources Inc | 1.04 | -0.38 | -0.22 |
| VLI.V | Vision Lithium Inc | 0.01 | 1.63 | 1.63 |
| Low | High | |
| Unlevered beta | 0.44 | 1.16 |
| Relevered beta | 0.81 | 1.18 |
| Adjusted relevered beta | 0.87 | 1.12 |
HUD.V'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 HUD.V:
cost_of_equity (10.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.87) + 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.