MUX
McEwen Mining Inc
Price:  
7.36 
USD
Volume:  
480,782.00
Canada | Metals & Mining
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MUX WACC - Weighted Average Cost of Capital

The WACC of McEwen Mining Inc (MUX) is 8.2%.

The Cost of Equity of McEwen Mining Inc (MUX) is 8.45%.
The Cost of Debt of McEwen Mining Inc (MUX) is 5.50%.

Range Selected
Cost of equity 6.70% - 10.20% 8.45%
Tax rate 6.90% - 8.90% 7.90%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.5% - 9.9% 8.2%
WACC

MUX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.62 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 10.20%
Tax rate 6.90% 8.90%
Debt/Equity ratio 0.1 0.1
Cost of debt 4.00% 7.00%
After-tax WACC 6.5% 9.9%
Selected WACC 8.2%

MUX'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 MUX:

cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.62) + 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.