ME.TO WACC - Weighted Average Cost of Capital
The WACC of Moneta Porcupine Mines Inc (ME.TO) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.8% | 9.95% |
| Tax rate | 11.9% - 15.6% | 13.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 11.8% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.94 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.8% |
| Tax rate | 11.9% | 15.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 11.8% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ME.TO | Moneta Porcupine Mines Inc | 0 | 0.59 | 0.59 |
| BNAU.TO | Battle North Gold Corp | 0 | 1.74 | 1.74 |
| FVL.TO | Freegold Ventures Ltd | 0 | 1.49 | 1.49 |
| IRV.CN | Irving Resources Inc | 0.01 | 2.81 | 2.78 |
| ITR.V | Integra Resources Corp | 0.03 | 1.59 | 1.56 |
| LIO.V | Lion One Metals Ltd | 0.44 | 1.23 | 0.89 |
| OIII.V | O3 Mining Inc | 0.04 | -0.38 | -0.37 |
| PRB.V | Probe Metals Inc | 0 | 1.39 | 1.38 |
| RIO.V | Rio2 Ltd | 0 | 1.86 | 1.86 |
| THX.V | Thor Explorations Ltd | 0.08 | 1.29 | 1.21 |
| Low | High | |
| Unlevered beta | 1.31 | 1.52 |
| Relevered beta | 0.91 | 1.36 |
| Adjusted relevered beta | 0.94 | 1.24 |
ME.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 ME.TO:
cost_of_equity (9.95%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.94) + 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.