THX.V WACC - Weighted Average Cost of Capital

The WACC of Thor Explorations Ltd (THX.V) is 8.3%.

The Cost of Equity of Thor Explorations Ltd (THX.V) is 8.60%.

The Cost of Debt of Thor Explorations Ltd (THX.V) is 4.30%.

	Range	Selected
Cost of equity	6.90% - 10.30%	8.60%
Tax rate	0.20% - 0.50%	0.35%
Cost of debt	4.10% - 4.50%	4.30%
WACC	6.7% - 9.9%	8.3%

WACC

THX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.6	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.30%

Tax rate	0.20%	0.50%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.10%	4.50%

After-tax WACC	6.7%	9.9%


Selected WACC	8.3%

THX.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 THX.V:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.