HUT.TO WACC - Weighted Average Cost of Capital
The WACC of Hut 8 Mining Corp (HUT.TO) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.9% | 5.9% |
| Tax rate | 2.5% - 5.8% | 4.15% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 4.9% - 6.9% | 5.9% |
| 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 | 4.9% | 6.9% |
| Tax rate | 2.5% | 5.8% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HUT.TO | Hut 8 Mining Corp | 0.02 | 2.64 | 2.59 |
| ASUR | Asure Software Inc | 0.05 | 0.78 | 0.74 |
| CTK | CooTek (Cayman) Inc | 2.94 | 0.48 | 0.13 |
| GTYH | Gty Technology Holdings Inc | 0.07 | -0.41 | -0.39 |
| INVU | Investview Inc | 0.03 | -0.83 | -0.81 |
| LGIQ | Logiq Inc | 35.78 | 0.74 | 0.02 |
| MCLD.V | mCloud Technologies Corp | 4.99 | -1.29 | -0.22 |
| OPT.TO | Optiva Inc | 32.43 | 0.6 | 0.02 |
| PFM.V | ProntoForms Corp | 0.09 | -1.24 | -1.15 |
| QUMU | Qumu Corp | 0.01 | 1.41 | 1.4 |
| XNET | Xunlei Ltd | 0.08 | 1.37 | 1.27 |
| Low | High | |
| Unlevered beta | 0.02 | 0.13 |
| Relevered beta | -0.12 | 0.06 |
| Adjusted relevered beta | 0.25 | 0.37 |
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.