YRI.TO
Yamana Gold Inc
Price:  
7.89 
CAD
Volume:  
703,387.00
Canada | Metals & Mining
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YRI.TO WACC - Weighted Average Cost of Capital

The WACC of Yamana Gold Inc (YRI.TO) is 8.7%.

The Cost of Equity of Yamana Gold Inc (YRI.TO) is 9.50%.
The Cost of Debt of Yamana Gold Inc (YRI.TO) is 4.40%.

Range Selected
Cost of equity 7.90% - 11.10% 9.50%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.10% - 4.70% 4.40%
WACC 7.3% - 10.1% 8.7%
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 0.94 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 11.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.10% 4.70%
After-tax WACC 7.3% 10.1%
Selected WACC 8.7%

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 (9.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.94) + 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.