YRI.TO WACC - Weighted Average Cost of Capital

The WACC of Yamana Gold Inc (YRI.TO) is 9.0%.

The Cost of Equity of Yamana Gold Inc (YRI.TO) is 9.95%.

The Cost of Debt of Yamana Gold Inc (YRI.TO) is 4.40%.

	Range	Selected
Cost of equity	8.50% - 11.40%	9.95%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	4.10% - 4.70%	4.40%
WACC	7.7% - 10.3%	9.0%

WACC

YRI.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.04	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.40%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.10%	4.70%

After-tax WACC	7.7%	10.3%


Selected WACC	9.0%

YRI.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 YRI.TO:

cost_of_equity (9.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.04) + 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.