VTT.V
Vendetta Mining Corp
Price:  
0.01 
CAD
Volume:  
52,500
Canada | Metals & Mining

VTT.V WACC - Weighted Average Cost of Capital

The WACC of Vendetta Mining Corp (VTT.V) is 8.9%.

The Cost of Equity of Vendetta Mining Corp (VTT.V) is 8.9%.
The Cost of Debt of Vendetta Mining Corp (VTT.V) is 5%.

RangeSelected
Cost of equity7.7% - 10.1%8.9%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC7.7% - 10.0%8.9%
WACC

VTT.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.750.86
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.1%
Tax rate26.2%27.0%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC7.7%10.0%
Selected WACC8.9%

VTT.V WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.630.79
Relevered beta0.630.79
Adjusted relevered beta0.750.86

VTT.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 VTT.V:

cost_of_equity (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.