OMI.TO
Orosur Mining Inc
Price:  
0.20 
CAD
Volume:  
21,570.00
Canada | Metals & Mining
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OMI.TO WACC - Weighted Average Cost of Capital

The WACC of Orosur Mining Inc (OMI.TO) is 5.8%.

The Cost of Equity of Orosur Mining Inc (OMI.TO) is 8.00%.
The Cost of Debt of Orosur Mining Inc (OMI.TO) is 5.00%.

Range Selected
Cost of equity 5.70% - 10.30% 8.00%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 7.0% 5.8%
WACC

OMI.TO WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.5 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 10.30%
Tax rate 26.50% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 7.0%
Selected WACC 5.8%

OMI.TO'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 OMI.TO:

cost_of_equity (8.00%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.5) + 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.