WM.TO
Wallbridge Mining Company Ltd
Price:  
0.07 
CAD
Volume:  
883,032.00
Canada | Metals & Mining
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WM.TO WACC - Weighted Average Cost of Capital

The WACC of Wallbridge Mining Company Ltd (WM.TO) is 9.7%.

The Cost of Equity of Wallbridge Mining Company Ltd (WM.TO) is 9.70%.
The Cost of Debt of Wallbridge Mining Company Ltd (WM.TO) is 5.00%.

Range Selected
Cost of equity 6.40% - 13.00% 9.70%
Tax rate 33.10% - 39.00% 36.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 13.0% 9.7%
WACC

WM.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.63 1.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 13.00%
Tax rate 33.10% 39.00%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 13.0%
Selected WACC 9.7%

WM.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 WM.TO:

cost_of_equity (9.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.