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 8.10%.

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

	Range	Selected
Cost of equity	7.00% - 9.20%	8.10%
Tax rate	9.60% - 11.30%	10.45%
Cost of debt	4.00% - 142.50%	73.25%
WACC	7.0% - 9.3%	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	0.76	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	9.20%

Tax rate	9.60%	11.30%
Debt/Equity ratio	0	0
Cost of debt	4.00%	142.50%

After-tax WACC	7.0%	9.3%


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 (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.