The WACC of International Lithium Corp (ILC.V) is 6.8%.
Range | Selected | |
Cost of equity | 8.4% - 11.3% | 9.85% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.1% - 7.5% | 6.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.9 | 1.06 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.4% | 11.3% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.1% | 7.5% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ILC.V | International Lithium Corp | 1.19 | -0.52 | -0.28 |
AL.V | Alx Resources Corp | 0.01 | -0.66 | -0.66 |
CEM.V | Constantine Metal Resources Ltd | 0.07 | 1.4 | 1.33 |
EV.V | Erin Ventures Inc | 0.01 | -0.39 | -0.39 |
LBC.V | Libero Copper & Gold Corp | 0.03 | 0.65 | 0.64 |
LION.CN | Global Li-Ion Graphite Corp | 0.57 | -0.83 | -0.58 |
MLY.V | American CuMo Mining Corp | 1.09 | 1.05 | 0.59 |
RG.V | Romios Gold Resources Inc | 0.02 | 0.88 | 0.86 |
VIO.V | Vior Inc | 0 | 0.62 | 0.62 |
VONE.V | Vanadium One Iron Corp | 0.29 | 1.45 | 1.2 |
ZFR.V | Zephyr Minerals Ltd | 0.01 | 0.35 | 0.34 |
Low | High | |
Unlevered beta | 0.34 | 0.62 |
Relevered beta | 0.85 | 1.09 |
Adjusted relevered beta | 0.9 | 1.06 |
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 ILC.V:
cost_of_equity (9.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.9) + 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.