USA.TO WACC - Weighted Average Cost of Capital

The WACC of Americas Gold and Silver Corporation (USA.TO) is 6.8%.

The Cost of Equity of Americas Gold and Silver Corporation (USA.TO) is 6.60%.

The Cost of Debt of Americas Gold and Silver Corporation (USA.TO) is 10.90%.

	Range	Selected
Cost of equity	5.50% - 7.70%	6.60%
Tax rate	3.60% - 5.30%	4.45%
Cost of debt	6.80% - 15.00%	10.90%
WACC	5.6% - 7.9%	6.8%

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	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.70%

Tax rate	3.60%	5.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.80%	15.00%

After-tax WACC	5.6%	7.9%


Selected WACC	6.8%

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 (6.60%) = 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.