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    • QZM.V
    Quartz Mountain Resources Ltd
    Price:  
    0.69 
    CAD
    Volume:  
    2,000
    Canada | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    QZM.V WACC - Weighted Average Cost of Capital

    The WACC of Quartz Mountain Resources Ltd (QZM.V) is 9.8%.

    The Cost of Equity of Quartz Mountain Resources Ltd (QZM.V) is 9.85%.
    The Cost of Debt of Quartz Mountain Resources Ltd (QZM.V) is 5%.

    RangeSelected
    Cost of equity8.3% - 11.4%9.85%
    Tax rate0.0% - 0.1%0.05%
    Cost of debt5.0% - 5.0%5%
    WACC8.3% - 11.3%9.8%
    WACC

    QZM.V WACC calculation

    CategoryLowHigh
    Long-term bond rate3.9%4.4%
    Equity market risk premium5.1%6.1%
    Adjusted beta0.871.06
    Additional risk adjustments0.0%0.5%
    Cost of equity8.3%11.4%
    Tax rate0.0%0.1%
    Debt/Equity ratio
    		00
    Cost of debt5.0%5.0%
    After-tax WACC8.3%11.3%
    Selected WACC9.8%

    QZM.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 QZM.V:

    cost_of_equity (9.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.87) + 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.