TFPM.TO
Triple Flag Precious Metals Corp
Price:  
28.88 
CAD
Volume:  
415,324.00
Canada | Metals & Mining
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TFPM.TO WACC - Weighted Average Cost of Capital

The WACC of Triple Flag Precious Metals Corp (TFPM.TO) is 8.2%.

The Cost of Equity of Triple Flag Precious Metals Corp (TFPM.TO) is 8.15%.
The Cost of Debt of Triple Flag Precious Metals Corp (TFPM.TO) is 73.25%.

Range Selected
Cost of equity 7.00% - 9.30% 8.15%
Tax rate 9.60% - 11.30% 10.45%
Cost of debt 4.00% - 142.50% 73.25%
WACC 7.0% - 9.4% 8.2%
WACC

TFPM.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.75 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.30%
Tax rate 9.60% 11.30%
Debt/Equity ratio 0 0
Cost of debt 4.00% 142.50%
After-tax WACC 7.0% 9.4%
Selected WACC 8.2%

TFPM.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 TFPM.TO:

cost_of_equity (8.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.