TECK
Teck Resources Ltd
Price:  
35.10 
USD
Volume:  
2,312,469.00
Canada | Metals & Mining
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TECK WACC - Weighted Average Cost of Capital

The WACC of Teck Resources Ltd (TECK) is 6.9%.

The Cost of Equity of Teck Resources Ltd (TECK) is 7.80%.
The Cost of Debt of Teck Resources Ltd (TECK) is 6.90%.

Range Selected
Cost of equity 6.20% - 9.40% 7.80%
Tax rate 30.80% - 34.60% 32.70%
Cost of debt 6.30% - 7.50% 6.90%
WACC 5.7% - 8.1% 6.9%
WACC

TECK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.52 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.40%
Tax rate 30.80% 34.60%
Debt/Equity ratio 0.41 0.41
Cost of debt 6.30% 7.50%
After-tax WACC 5.7% 8.1%
Selected WACC 6.9%

TECK'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 TECK:

cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.52) + 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.