MT.V
M3 Metals Corp
Price:  
0.2 
CAD
Volume:  
5,020
Canada | Metals & Mining

MT.V WACC - Weighted Average Cost of Capital

The WACC of M3 Metals Corp (MT.V) is 6.8%.

The Cost of Equity of M3 Metals Corp (MT.V) is 9.8%.
The Cost of Debt of M3 Metals Corp (MT.V) is 5%.

RangeSelected
Cost of equity7.9% - 11.7%9.8%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC5.8% - 7.7%6.8%
WACC

MT.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.81.12
Additional risk adjustments0.0%0.5%
Cost of equity7.9%11.7%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.8%7.7%
Selected WACC6.8%

MT.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 MT.V:

cost_of_equity (9.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.