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    • LMS.V
    Latin Metals Inc
    Price:  
    0.19 
    CAD
    Volume:  
    44,847
    Canada | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    LMS.V WACC - Weighted Average Cost of Capital

    The WACC of Latin Metals Inc (LMS.V) is 6.5%.

    The Cost of Equity of Latin Metals Inc (LMS.V) is 9.35%.
    The Cost of Debt of Latin Metals Inc (LMS.V) is 5%.

    RangeSelected
    Cost of equity7.4% - 11.3%9.35%
    Tax rate26.2% - 27.0%26.6%
    Cost of debt5.0% - 5.0%5%
    WACC5.5% - 7.5%6.5%
    WACC

    LMS.V WACC calculation

    CategoryLowHigh
    Long-term bond rate3.9%4.4%
    Equity market risk premium5.1%6.1%
    Adjusted beta0.691.06
    Additional risk adjustments0.0%0.5%
    Cost of equity7.4%11.3%
    Tax rate26.2%27.0%
    Debt/Equity ratio
    		11
    Cost of debt5.0%5.0%
    After-tax WACC5.5%7.5%
    Selected WACC6.5%

    LMS.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 LMS.V:

    cost_of_equity (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.