SIE.V WACC - Weighted Average Cost of Capital
The WACC of Sienna Resources Inc (SIE.V) is 7.9%.
| Range | Selected | |
| Cost of equity | 9.9% - 14.2% | 12.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.9% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.18 | 1.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 14.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.9% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIE.V | Sienna Resources Inc | 1 | 0.56 | 0.32 |
| AMO.V | Altan Rio Minerals Ltd | 0.06 | 2 | 1.92 |
| LBC.V | Libero Copper & Gold Corp | 0.03 | 0.65 | 0.64 |
| NPR.V | North Peak Resources Ltd | 0 | 1.13 | 1.13 |
| UGM.V | UrbanGold Minerals Inc | 0.03 | 0.9 | 0.88 |
| VONE.V | Vanadium One Iron Corp | 0.29 | 1.45 | 1.2 |
| VTT.V | Vendetta Mining Corp | 0.01 | -1.19 | -1.18 |
| ZFR.V | Zephyr Minerals Ltd | 0.01 | 0.37 | 0.37 |
| Low | High | |
| Unlevered beta | 0.59 | 0.93 |
| Relevered beta | 1.27 | 1.78 |
| Adjusted relevered beta | 1.18 | 1.52 |
SIE.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 SIE.V:
cost_of_equity (12.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.