WLF.V WACC - Weighted Average Cost of Capital
The WACC of Wolfden Resources Corp (WLF.V) is 9.0%.
| Range | Selected | |
| Cost of equity | 11.3% - 15.0% | 13.15% |
| Tax rate | 0.8% - 2.4% | 1.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 9.9% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.46 | 1.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 15.0% |
| Tax rate | 0.8% | 2.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 9.9% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WLF.V | Wolfden Resources Corp | 1.12 | -0.64 | -0.3 |
| AQA.TO | Aquila Resources Inc | 0.02 | 0.88 | 0.86 |
| CGLD | Buscar Co | 0.04 | 1.49 | 1.44 |
| CNX.V | Callinex Mines Inc | 0 | 0.15 | 0.15 |
| CUR.V | International Consolidated Uranium Inc | 0 | 1.69 | 1.69 |
| DAN.V | Arianne Phosphate Inc | 0.91 | 0.69 | 0.36 |
| ENDR.V | Enduro Metals Corp | 0.05 | 0.88 | 0.83 |
| GIGA.V | Giga Metals Corp | 0.01 | 1.17 | 1.16 |
| SMD.V | Strategic Metals Ltd | 0 | 0.89 | 0.89 |
| SMY.V | Search Minerals Inc | 0.15 | -1.27 | -1.1 |
| VLI.V | Vision Lithium Inc | 0.01 | 1.63 | 1.62 |
| Low | High | |
| Unlevered beta | 0.83 | 0.89 |
| Relevered beta | 1.69 | 1.97 |
| Adjusted relevered beta | 1.46 | 1.65 |
WLF.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 WLF.V:
cost_of_equity (13.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * 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.