HYMC
Hycroft Mining Holding Corporation
Price:  
3.06 
USD
Volume:  
109,170.00
United States | Metals & Mining
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HYMC WACC - Weighted Average Cost of Capital

The WACC of Hycroft Mining Holding Corporation (HYMC) is 8.3%.

The Cost of Equity of Hycroft Mining Holding Corporation (HYMC) is 17.20%.
The Cost of Debt of Hycroft Mining Holding Corporation (HYMC) is 5.00%.

Range Selected
Cost of equity 14.70% - 19.70% 17.20%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 9.2% 8.3%
WACC

HYMC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.36 2.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.70% 19.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.9 1.9
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 9.2%
Selected WACC 8.3%

HYMC'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 HYMC:

cost_of_equity (17.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.36) + 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.