NI.CN WACC - Weighted Average Cost of Capital

The WACC of Victory Nickel Inc (NI.CN) is 4.7%.

The Cost of Equity of Victory Nickel Inc (NI.CN) is 11.60%.

The Cost of Debt of Victory Nickel Inc (NI.CN) is 5.00%.

	Range	Selected
Cost of equity	7.90% - 15.30%	11.60%
Tax rate	1.80% - 33.40%	17.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.2% - 4.3%	4.7%

WACC

NI.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	15.30%

Tax rate	1.80%	33.40%
Debt/Equity ratio	11.45	11.45
Cost of debt	5.00%	5.00%

After-tax WACC	5.2%	4.3%


Selected WACC	4.7%

NI.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 NI.CN:

cost_of_equity (11.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.