STND.V
Standard Uranium Ltd.
Price:  
0.06 
CAD
Volume:  
128,200.00
Canada | N/A
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STND.V WACC - Weighted Average Cost of Capital

The WACC of Standard Uranium Ltd. (STND.V) is 6.8%.

The Cost of Equity of Standard Uranium Ltd. (STND.V) is 6.85%.
The Cost of Debt of Standard Uranium Ltd. (STND.V) is 5.00%.

Range Selected
Cost of equity 5.50% - 8.20% 6.85%
Tax rate 18.30% - 31.00% 24.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 8.2% 6.8%
WACC

STND.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.32 0.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.20%
Tax rate 18.30% 31.00%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 8.2%
Selected WACC 6.8%

STND.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 STND.V:

cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.