HUT.TO
Hut 8 Mining Corp
Price:  
20.90 
CAD
Volume:  
666,078.00
Canada | Software
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HUT.TO WACC - Weighted Average Cost of Capital

The WACC of Hut 8 Mining Corp (HUT.TO) is 5.9%.

The Cost of Equity of Hut 8 Mining Corp (HUT.TO) is 5.90%.
The Cost of Debt of Hut 8 Mining Corp (HUT.TO) is 5.70%.

Range Selected
Cost of equity 4.90% - 6.90% 5.90%
Tax rate 2.50% - 5.80% 4.15%
Cost of debt 4.40% - 7.00% 5.70%
WACC 4.9% - 6.9% 5.9%
WACC

HUT.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.25 0.37
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.90% 6.90%
Tax rate 2.50% 5.80%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.40% 7.00%
After-tax WACC 4.9% 6.9%
Selected WACC 5.9%

HUT.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 HUT.TO:

cost_of_equity (5.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.25) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.