KNG.V
Kingsmen Resources Ltd
Price:  
1.05 
CAD
Volume:  
34,000.00
Canada | Metals & Mining
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KNG.V WACC - Weighted Average Cost of Capital

The WACC of Kingsmen Resources Ltd (KNG.V) is 8.7%.

The Cost of Equity of Kingsmen Resources Ltd (KNG.V) is 13.75%.
The Cost of Debt of Kingsmen Resources Ltd (KNG.V) is 5.00%.

Range Selected
Cost of equity 11.60% - 15.90% 13.75%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 9.8% 8.7%
WACC

KNG.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.51 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.60% 15.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 9.8%
Selected WACC 8.7%

KNG.V'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 KNG.V:

cost_of_equity (13.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.51) + 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.