TSN.V
Telson Mining Corp
Price:  
0.35 
CAD
Volume:  
181,590.00
Canada | Metals & Mining
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TSN.V WACC - Weighted Average Cost of Capital

The WACC of Telson Mining Corp (TSN.V) is 7.7%.

The Cost of Equity of Telson Mining Corp (TSN.V) is 8.85%.
The Cost of Debt of Telson Mining Corp (TSN.V) is 5.50%.

Range Selected
Cost of equity 7.70% - 10.00% 8.85%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.6% - 8.9% 7.7%
WACC

TSN.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.95 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.00%
Tax rate 27.00% 27.00%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.00% 7.00%
After-tax WACC 6.6% 8.9%
Selected WACC 7.7%

TSN.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 TSN.V:

cost_of_equity (8.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.95) + 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.