TI.TO
Titan Mining Corp
Price:  
0.69 
CAD
Volume:  
14,676.00
Canada | Metals & Mining
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TI.TO WACC - Weighted Average Cost of Capital

The WACC of Titan Mining Corp (TI.TO) is 10.1%.

The Cost of Equity of Titan Mining Corp (TI.TO) is 11.65%.
The Cost of Debt of Titan Mining Corp (TI.TO) is 6.95%.

Range Selected
Cost of equity 9.80% - 13.50% 11.65%
Tax rate 1.60% - 4.70% 3.15%
Cost of debt 4.20% - 9.70% 6.95%
WACC 8.0% - 12.2% 10.1%
WACC

TI.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.31 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.50%
Tax rate 1.60% 4.70%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.20% 9.70%
After-tax WACC 8.0% 12.2%
Selected WACC 10.1%

TI.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 TI.TO:

cost_of_equity (11.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.31) + 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.