The WACC of Zinc One Resources Inc (Z.V) is 9.1%.
Range | Selected | |
Cost of equity | 8.3% - 11.4% | 9.85% |
Tax rate | 27.0% - 27.0% | 27% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.8% - 10.4% | 9.1% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 1.09 | 1.25 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.3% | 11.4% |
Tax rate | 27.0% | 27.0% |
Debt/Equity ratio | 0.13 | 0.13 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.8% | 10.4% |
Selected WACC | 9.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
Z.V | Zinc One Resources Inc | 0.13 | 1.97 | 1.8 |
CCOB | Century Cobalt Corp | 91.26 | 0 | 0 |
GOM.V | Golden Dawn Minerals Inc | 0.32 | 1.64 | 1.33 |
GPM.V | GPM Metals Inc | 0.89 | 1.36 | 0.83 |
KING.V | King Global Ventures Inc | 0.83 | 0.06 | 0.04 |
LBY.V | Liberty One Lithium Corp | 0.03 | 2.05 | 2.01 |
MFM.V | Marifil Mines Ltd | 0.06 | 1.4 | 1.35 |
QZM.V | Quartz Mountain Resources Ltd | 0 | 0.98 | 0.98 |
SGZ.V | Sego Resources Inc | 0.97 | 0.88 | 0.51 |
SPD.V | Silver Predator Corp | 0.92 | 0.27 | 0.16 |
Low | High | |
Unlevered beta | 0.7 | 1.12 |
Relevered beta | 1.13 | 1.37 |
Adjusted relevered beta | 1.09 | 1.25 |
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 Z.V:
cost_of_equity (9.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.09) + 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.