STK.CN WACC - Weighted Average Cost of Capital

The WACC of Silverstock Metals Inc (STK.CN) is 3.3%.

The Cost of Equity of Silverstock Metals Inc (STK.CN) is 2.90%.

The Cost of Debt of Silverstock Metals Inc (STK.CN) is 5.00%.

	Range	Selected
Cost of equity	2.80% - 3.00%	2.90%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	3.4% - 3.2%	3.3%

WACC

STK.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	-1.2	-1.2

Additional risk adjustments	6.0%	6.5%
Cost of equity	2.80%	3.00%

Tax rate	25.90%	26.50%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	3.4%	3.2%


Selected WACC	3.3%

STK.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 STK.CN:

cost_of_equity (2.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-1.2) + risk_adjustments (6.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.