TSN.V
Telson Mining Corp
Price:  
0.35 
CAD
Volume:  
181,590
Canada | Metals & Mining

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 5.5%.

RangeSelected
Cost of equity7.7% - 10.0%8.85%
Tax rate27.0% - 27.0%27%
Cost of debt4.0% - 7.0%5.5%
WACC6.6% - 8.9%7.7%
WACC

TSN.V WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.7%5.7%
Adjusted beta0.951.01
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.0%
Tax rate27.0%27.0%
Debt/Equity ratio
0.280.28
Cost of debt4.0%7.0%
After-tax WACC6.6%8.9%
Selected WACC7.7%

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.