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    • LIRC.TO
    Lithium Royalty Corp
    Price:  
    5.55 
    CAD
    Volume:  
    1,355
    Canada | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    LIRC.TO WACC - Weighted Average Cost of Capital

    The WACC of Lithium Royalty Corp (LIRC.TO) is 11.7%.

    The Cost of Equity of Lithium Royalty Corp (LIRC.TO) is 11.75%.
    The Cost of Debt of Lithium Royalty Corp (LIRC.TO) is 5%.

    RangeSelected
    Cost of equity10.4% - 13.1%11.75%
    Tax rate24.4% - 37.7%31.05%
    Cost of debt5.0% - 5.0%5%
    WACC10.4% - 13.0%11.7%
    WACC

    LIRC.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.431.46
    Additional risk adjustments0.0%0.5%
    Cost of equity10.4%13.1%
    Tax rate24.4%37.7%
    Debt/Equity ratio
    		00
    Cost of debt5.0%5.0%
    After-tax WACC10.4%13.0%
    Selected WACC11.7%

    LIRC.TO WACC - Detailed calculations of Beta

    Debt/EquityUnlevered
    PeersCompany NameratioBetabeta
    LIRC.TOLithium Royalty Corp00.340.34
    AII.TO Almonty Industries Inc 0.23 1.94 1.68
    CUU.V Copper Fox Metals Inc 0 1.87 1.87
    NKL.V Nickel 28 Capital Corp 1.05 1.54 0.92
    TECK Teck Resources Ltd 0.4 2.06 1.64
    WM.TO Wallbridge Mining Company Ltd 0 1.79 1.79
    LowHigh
    Unlevered beta1.641.68
    Relevered beta1.641.69
    Adjusted relevered beta1.431.46

    LIRC.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 LIRC.TO:

    cost_of_equity (11.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.43) + 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.