TKO.TO WACC - Weighted Average Cost of Capital

The WACC of Taseko Mines Ltd (TKO.TO) is 9.5%.

The Cost of Equity of Taseko Mines Ltd (TKO.TO) is 11.90%.

The Cost of Debt of Taseko Mines Ltd (TKO.TO) is 11.65%.

	Range	Selected
Cost of equity	9.50% - 14.30%	11.90%
Tax rate	36.90% - 42.00%	39.45%
Cost of debt	8.40% - 14.90%	11.65%
WACC	7.5% - 11.6%	9.5%

WACC

TKO.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.25	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	14.30%

Tax rate	36.90%	42.00%
Debt/Equity ratio	0.94	0.94
Cost of debt	8.40%	14.90%

After-tax WACC	7.5%	11.6%


Selected WACC	9.5%

TKO.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 TKO.TO:

cost_of_equity (11.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.25) + 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.