TV.TO
Trevali Mining Corp
Price:  
0.21 
CAD
Volume:  
57,190
Canada | Metals & Mining

TV.TO WACC - Weighted Average Cost of Capital

The WACC of Trevali Mining Corp (TV.TO) is 10.3%.

The Cost of Equity of Trevali Mining Corp (TV.TO) is 20.4%.
The Cost of Debt of Trevali Mining Corp (TV.TO) is 10.1%.

RangeSelected
Cost of equity17.3% - 23.5%20.4%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.3% - 14.9%10.1%
WACC6.9% - 13.8%10.3%
WACC

TV.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta2.783.17
Additional risk adjustments0.0%0.5%
Cost of equity17.3%23.5%
Tax rate25.9%26.5%
Debt/Equity ratio
3.493.49
Cost of debt5.3%14.9%
After-tax WACC6.9%13.8%
Selected WACC10.3%

TV.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 TV.TO:

cost_of_equity (20.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.78) + 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.