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    • LL.V
    Canada Rare Earth Corp
    Price:  
    0.02 
    CAD
    Volume:  
    1,000
    Canada | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC

    LL.V WACC - Weighted Average Cost of Capital

    The WACC of Canada Rare Earth Corp (LL.V) is 8.7%.

    The Cost of Equity of Canada Rare Earth Corp (LL.V) is 10.55%.
    The Cost of Debt of Canada Rare Earth Corp (LL.V) is 7%.

    RangeSelected
    Cost of equity8.6% - 12.5%10.55%
    Tax rate26.2% - 27.0%26.6%
    Cost of debt7.0% - 7.0%7%
    WACC7.4% - 9.9%8.7%
    WACC

    LL.V WACC calculation

    CategoryLowHigh
    Long-term bond rate3.9%4.4%
    Equity market risk premium5.1%6.1%
    Adjusted beta0.931.26
    Additional risk adjustments0.0%0.5%
    Cost of equity8.6%12.5%
    Tax rate26.2%27.0%
    Debt/Equity ratio
    		0.540.54
    Cost of debt7.0%7.0%
    After-tax WACC7.4%9.9%
    Selected WACC8.7%

    LL.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 LL.V:

    cost_of_equity (10.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.