WM.TO WACC - Weighted Average Cost of Capital
The WACC of Wallbridge Mining Company Ltd (WM.TO) is 9.9%.
| Range | Selected | |
| Cost of equity | 6.6% - 13.3% | 9.95% |
| Tax rate | 33.1% - 39.0% | 36.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 13.3% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.67 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 13.3% |
| Tax rate | 33.1% | 39.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 13.3% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WM.TO | Wallbridge Mining Company Ltd | 0 | 1.65 | 1.65 |
| FIL.V | Filo Mining Corp | 0 | 1.94 | 1.94 |
| LI.V | American Lithium Corp | 0 | 1.99 | 1.99 |
| NB.TO | NioCorp Developments Ltd | 0.05 | -1.78 | -1.73 |
| NCU.TO | Nevada Copper Corp | 7.58 | 1.28 | 0.22 |
| NDM.TO | Northern Dynasty Minerals Ltd | 0 | 1.87 | 1.87 |
| POM.TO | Polymet Mining Corp | 0.23 | -0.31 | -0.27 |
| SGMA.V | Sigma Lithium Resources Corp | 0 | 0.45 | 0.45 |
| SLL.V | Standard Lithium Ltd | 0.01 | 1.88 | 1.87 |
| TUD.V | Tudor Gold Corp | 0 | 0.56 | 0.56 |
| Low | High | |
| Unlevered beta | 0.51 | 1.74 |
| Relevered beta | 0.51 | 1.73 |
| Adjusted relevered beta | 0.67 | 1.49 |
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 (9.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.