WHM.V WACC - Weighted Average Cost of Capital
The WACC of White Metal Resources Corp (WHM.V) is 7.5%.
| Range | Selected | |
| Cost of equity | 10.1% - 12.7% | 11.4% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 8.2% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.46 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 12.7% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 8.2% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WHM.V | White Metal Resources Corp | 0.97 | 3.3 | 1.93 |
| ARIC.V | Awale Resources Ltd | 1.12 | 0.86 | 0.47 |
| HWY.V | Highway 50 Gold Corp | 0.07 | 0.27 | 0.25 |
| KTR.V | Kintavar Exploration Inc | 0.63 | 1.39 | 0.96 |
| NSG.CN | Northstar Gold Corp | 1.18 | 0.8 | 0.43 |
| NXS.V | Nexus Gold Corp | 1.47 | 3.5 | 1.69 |
| OTS.H.V | Optimus Gold Corp | 0.08 | -0.59 | -0.56 |
| PLYN | Palayan Resources Inc | 61.38 | -288.2 | -6.29 |
| STU.V | Stuhini Exploration Ltd | 1.02 | 1.67 | 0.96 |
| TECT.V | Tectonic Metals Inc | 1.09 | 0.84 | 0.47 |
| VALU.CN | Valorem Resources Inc | 1.1 | 1.84 | 1.02 |
| Low | High | |
| Unlevered beta | 0.47 | 0.96 |
| Relevered beta | 1.69 | 1.73 |
| Adjusted relevered beta | 1.46 | 1.49 |
WHM.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 WHM.V:
cost_of_equity (11.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.46) + 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.