TI.TO WACC - Weighted Average Cost of Capital

The WACC of Titan Mining Corp (TI.TO) is 11.1%.

The Cost of Equity of Titan Mining Corp (TI.TO) is 13.50%.

The Cost of Debt of Titan Mining Corp (TI.TO) is 7.05%.

	Range	Selected
Cost of equity	11.20% - 15.80%	13.50%
Tax rate	1.60% - 4.70%	3.15%
Cost of debt	4.40% - 9.70%	7.05%
WACC	8.8% - 13.5%	11.1%

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	1.58	1.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.80%

Tax rate	1.60%	4.70%
Debt/Equity ratio	0.55	0.55
Cost of debt	4.40%	9.70%

After-tax WACC	8.8%	13.5%


Selected WACC	11.1%

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 (13.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.58) + 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.