TSD.V
Tsodilo Resources Ltd
Price:  
0.1 
CAD
Volume:  
8,000
Canada | Metals & Mining

TSD.V WACC - Weighted Average Cost of Capital

The WACC of Tsodilo Resources Ltd (TSD.V) is 7.2%.

The Cost of Equity of Tsodilo Resources Ltd (TSD.V) is 9.2%.
The Cost of Debt of Tsodilo Resources Ltd (TSD.V) is 5%.

RangeSelected
Cost of equity7.5% - 10.9%9.2%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 8.3%7.2%
WACC

TSD.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.710.99
Additional risk adjustments0.0%0.5%
Cost of equity7.5%10.9%
Tax rate26.2%27.0%
Debt/Equity ratio
0.560.56
Cost of debt5.0%5.0%
After-tax WACC6.1%8.3%
Selected WACC7.2%

TSD.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 TSD.V:

cost_of_equity (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.