MTN.H.V WACC - Weighted Average Cost of Capital
The WACC of Martina Minerals Corp (MTN.H.V) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.6% - 11.2% | 8.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 5.9% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 11.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.42 | 2.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 5.9% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MTN.H.V | Martina Minerals Corp | 2.42 | -4.34 | -1.57 |
| AAP.H.V | Alpha Peak Leisure Inc | 0.02 | 0.96 | 0.94 |
| HOFV | Hall of Fame Resort & Entertainment Co | 47.73 | 0.52 | 0.01 |
| ICE.TO | Canlan Ice Sports Corp | 0.85 | -0.09 | -0.06 |
| PRKA | Parks! America Inc | 0.13 | 1.03 | 0.94 |
| SEAS | SeaWorld Entertainment Inc | 0.66 | 1.4 | 0.94 |
| SIX | Six Flags Entertainment Corp | 0.88 | 1.94 | 1.18 |
| WTKN | WellTek Inc | 1019.36 | -1.7 | 0 |
| Low | High | |
| Unlevered beta | 0.01 | 0.94 |
| Relevered beta | 0.01 | 1.06 |
| Adjusted relevered beta | 0.34 | 1.04 |
MTN.H.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 MTN.H.V:
cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.