ITKO.CN
Idaho Champion Gold Mines Canada Inc
Price:  
0.12 
CAD
Volume:  
215,830
Canada | Mining

ITKO.CN WACC - Weighted Average Cost of Capital

The WACC of Idaho Champion Gold Mines Canada Inc (ITKO.CN) is 6.2%.

The Cost of Equity of Idaho Champion Gold Mines Canada Inc (ITKO.CN) is 6.15%.
The Cost of Debt of Idaho Champion Gold Mines Canada Inc (ITKO.CN) is 5%.

RangeSelected
Cost of equity4.9% - 7.4%6.15%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC4.9% - 7.4%6.2%
WACC

ITKO.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.6%4.1%
Equity market risk premium5.5%6.5%
Adjusted beta0.250.43
Additional risk adjustments0.0%0.5%
Cost of equity4.9%7.4%
Tax rate25.9%26.5%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC4.9%7.4%
Selected WACC6.2%

ITKO.CN'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 ITKO.CN:

cost_of_equity (6.15%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.25) + 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.