MMV.V WACC - Weighted Average Cost of Capital
The WACC of Mineral Mountain Resources Ltd (MMV.V) is 10.0%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.3% | 10.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 12.2% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.65 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 12.2% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MMV.V | Mineral Mountain Resources Ltd | 0.01 | -0.43 | -0.42 |
| APGO.V | Apollo Gold & Silver Corp | 0 | 2.46 | 2.46 |
| BRW.V | Brunswick Exploration Inc | 1.14 | -0.14 | -0.07 |
| IVS.V | Inventus Mining Corp | 0 | -1.27 | -1.26 |
| MM.CN | Metallica Metals Corp | 0 | 1.49 | 1.49 |
| MTU.V | Manitou Gold Inc | 0 | 0.96 | 0.96 |
| NGE.V | Nevada Exploration Inc | 0.08 | -0.2 | -0.19 |
| OREA.TO | Orea Mining Corp | 0.01 | 2.62 | 2.59 |
| SOI.V | Sirios Resources Inc | 0 | 0.7 | 0.7 |
| SOMA.V | Soma Gold Corp | 0.28 | 0.7 | 0.58 |
| Low | High | |
| Unlevered beta | 0.32 | 0.8 |
| Relevered beta | 0.48 | 1.15 |
| Adjusted relevered beta | 0.65 | 1.1 |
MMV.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 MMV.V:
cost_of_equity (10.05%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.65) + 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.