SBR.TO WACC - Weighted Average Cost of Capital

The WACC of Silver Bear Resources Inc (SBR.TO) is 14.3%.

The Cost of Equity of Silver Bear Resources Inc (SBR.TO) is 21.35%.

The Cost of Debt of Silver Bear Resources Inc (SBR.TO) is 13.60%.

	Range	Selected
Cost of equity	12.50% - 30.20%	21.35%
Tax rate	-% - 0.10%	0.05%
Cost of debt	4.00% - 23.20%	13.60%
WACC	4.8% - 23.8%	14.3%

WACC

SBR.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.83	4.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	30.20%

Tax rate	-%	0.10%
Debt/Equity ratio	9.71	9.71
Cost of debt	4.00%	23.20%

After-tax WACC	4.8%	23.8%


Selected WACC	14.3%

SBR.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 SBR.TO:

cost_of_equity (21.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.83) + 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.