MY.X.CN WACC - Weighted Average Cost of Capital
The WACC of Montego Resources Inc (MY.X.CN) is 5.3%.
| Range | Selected | |
| Cost of equity | 5.5% - 9.5% | 7.5% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.35 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 9.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1.39 | 1.39 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MY.X.CN | Montego Resources Inc | 1.39 | 1.13 | 0.56 |
| ALM.V | Alliance Mining Corp | 0.62 | 1.49 | 1.03 |
| DEEP.CN | DeepRock Minerals Inc | 0.02 | 1.1 | 1.09 |
| EI.CN | Eurogas International Inc | 123.89 | 2.06 | 0.02 |
| IPRC | Imperial Resources Inc | 289.7 | 0.69 | 0 |
| MFX.V | Minfocus Exploration Corp | 0.01 | 1.96 | 1.94 |
| NED.V | New Destiny Mining Corp | 0.03 | -1.68 | -1.64 |
| SCD.V | Samoth Oilfield Inc | 1.18 | 0.82 | 0.44 |
| Low | High | |
| Unlevered beta | 0.36 | 0.65 |
| Relevered beta | 0.03 | 0.64 |
| Adjusted relevered beta | 0.35 | 0.76 |
MY.X.CN'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 MY.X.CN:
cost_of_equity (7.50%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.35) + 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.