K.TO WACC - Weighted Average Cost of Capital

The WACC of Kinross Gold Corp (K.TO) is 9.9%.

The Cost of Equity of Kinross Gold Corp (K.TO) is 10.45%.

The Cost of Debt of Kinross Gold Corp (K.TO) is 4.85%.

	Range	Selected
Cost of equity	9.30% - 11.60%	10.45%
Tax rate	38.00% - 46.20%	42.10%
Cost of debt	4.00% - 5.70%	4.85%
WACC	8.7% - 11.0%	9.9%

WACC

K.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.2	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.60%

Tax rate	38.00%	46.20%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	5.70%

After-tax WACC	8.7%	11.0%


Selected WACC	9.9%

K.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 K.TO:

cost_of_equity (10.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.2) + 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.