Lundin MiningLNDMY -8.52%53 WACC % is 9.33% as of Jun. 24, 2026, which is 27% below its 10-year median of 12.81. GuruFocus rates LNDMY with a GF Score™ of 53/100 and a GF Value™ of $13.52 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,670 Metals & Mining companies, Lundin Mining ranks worse than 83% on this metric.
As of today (2026-06-24), Lundin Mining's weighted average cost of capital is 9.33%%. Lundin Mining's ROIC % is 15.35% (calculated using TTM income statement data).
Lundin Mining generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Lundin Mining (OTCPK:LNDMY) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Lundin Mining's weighted average cost of capital is 9.33%%. Lundin Mining's ROIC % is 15.35% (calculated using TTM income statement data).
Lundin Mining generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Lundin Mining WACC % Historical Data
* Premium members only.
The historical data trend for Lundin Mining's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Copper subindustry, Lundin Mining's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lundin Mining WACC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lundin Mining's WACC % distribution charts can be found below:
* The bar in red indicates where Lundin Mining's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Lundin Mining's market capitalization (E) is $19187.159 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Lundin Mining's latest one-year quarterly average Book Value of Debt (D) is $868.9702 Mil.
a) weight of equity = E / (E + D) = 19187.159 / (19187.159 + 868.9702) = 0.9567
b) weight of debt = D / (E + D) = 868.9702 / (19187.159 + 868.9702) = 0.0433
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.5415%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Lundin Mining's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.5415% + 1 * 6% = 9.5415%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Lundin Mining's interest expense (positive number) was $40.6 Mil. Its total Book Value of Debt (D) is $868.9702 Mil.
Cost of Debt = 40.6 / 868.9702 = 4.6722%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = -233.6 / 1389.8 = -16.81%, which is less than 0%. Therefore it's set to 0%.
Lundin Mining's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9567
*
9.5415%
+
0.0433
*
4.6722%
*
(1 - 0%)
=
9.33%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lundin Mining (LNDMY) has a WACC % of 9.33% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lundin Mining and its competitors. This is 27% below median its historical median of 12.81. Over the past decade, Lundin Mining's WACC % has ranged from 10.18 to 19.30. According to the industry distribution chart, Lundin Mining ranks #2216 out of 2670 companies in the Metals & Mining industry, placing it in the top 83%.
Is Lundin Mining's WACC % too high?
Lundin Mining's current WACC % of 9.33% is 27% below median its 10-year median of 12.81. Over the past 10 years, this metric has ranged from a low of 10.18 to a high of 19.30. The Metals & Mining industry median WACC % is 9.59. Lundin Mining's value of 9.33% is 2.7% below this industry median. Based on the distribution chart, Lundin Mining ranks #2216 out of 2670 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Lundin Mining has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lundin Mining's WACC % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, Lundin Mining ranks #2216 out of 2670 companies for WACC %. This places Lundin Mining in the lower half of its industry. The industry median WACC % is 9.59. Lundin Mining's value of 9.33% is 2.7% below this benchmark. Historically, Lundin Mining's own WACC % has ranged from 10.18 to 19.30 over the past decade. While the company's 10-year median is 12.81 vs. the industry median of 9.59, Lundin Mining has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Metals & Mining company?
The median WACC % among Metals & Mining companies is 9.59, based on 2,670 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lundin Mining's current WACC % of 9.33% is 2.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lundin Mining and its competitors. For the Metals & Mining industry, the median WACC % is 9.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lundin Mining's current WACC % is 9.33%, which is 27% below median its own 10-year median of 12.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lundin Mining stock overvalued right now?
Based on GuruFocus' analysis, Lundin Mining (LNDMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.52, compared to a current price of $22.87 — trading 69.2% above its estimated fair value. The current WACC % is 9.33%, which is 27% below median its 10-year median of 12.81 and 2.7% below the Metals & Mining industry median of 9.59. Lundin Mining's overall GF Score™ is 53/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Lundin Mining (LNDMY), the current WACC % is 9.33% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lundin Mining (LNDMY) Overvalued in 2026?
Based on GuruFocus' analysis, Lundin Mining stock appears to be overvalued.
The current stock price of $22.87 is trading 69.2% above its estimated GF Value™ of $13.52.
GuruFocus considers Lundin Mining to be Significantly Overvalued.
Key valuation signals for LNDMY:
WACC %: 9.33% (27% below median its 10-year median of 12.81)
GF Value™: $13.52 vs. price of $22.87 (69.2% above fair value)
Industry Position: 2.7% below the Metals & Mining median (#2216 of 2670)
No single metric tells the full story. See the LNDMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lundin Mining Corp is adiversified Canadian base metals mining company primarily producing copper and gold with operations in Brazil, Chile, Portugal, Sweden, and the United States of America, producing copper, zinc, gold, and nickel. Its material mineral properties include Candelaria, Chapada, and Caserones. The majority of the revenue is from Copper.
53GF Score
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