USA.TO
Americas Gold and Silver Corporation
Price:  
0.85 
CAD
Volume:  
146,873.00
Canada | Metals & Mining
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USA.TO WACC - Weighted Average Cost of Capital

The WACC of Americas Gold and Silver Corporation (USA.TO) is 7.0%.

The Cost of Equity of Americas Gold and Silver Corporation (USA.TO) is 6.95%.
The Cost of Debt of Americas Gold and Silver Corporation (USA.TO) is 9.05%.

Range Selected
Cost of equity 5.60% - 8.30% 6.95%
Tax rate 2.50% - 4.00% 3.25%
Cost of debt 7.00% - 11.10% 9.05%
WACC 5.6% - 8.4% 7.0%
WACC

USA.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.30%
Tax rate 2.50% 4.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 7.00% 11.10%
After-tax WACC 5.6% 8.4%
Selected WACC 7.0%

USA.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 USA.TO:

cost_of_equity (6.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.