Cascadero Copper (TSXV:CCD) WACC %

:10.73% (As of Today)

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As of today (2023-03-26), Cascadero Copper's weighted average cost of capital is 10.73%. Cascadero Copper's ROIC % is -158.30% (calculated using TTM income statement data). Cascadero Copper earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cascadero Copper WACC % Historical Data

The historical data trend for Cascadero Copper'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.

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Cascadero Copper Annual Data

Trend

Nov12

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

WACC %

27.22

35.52

7.13

9.25

10.61

Cascadero Copper Quarterly Data
	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22
WACC %																9.12	10.61	7.31	6.67	5.99

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Cascadero Copper'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.

Annual Data Quarterly Data

Cascadero Copper WACC % Distribution

For the Metals & Mining industry and Basic Materials sector, Cascadero Copper's WACC % distribution charts can be found below:

* The bar in red indicates where Cascadero Copper's WACC % falls in comparison to its industry or sector. The grey bar indicates the WACC %'s extreme value range as defined by GuruFocus.

Cascadero Copper WACC % Calculation

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 + D)

Cost of Equity

(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, Cascadero Copper's market capitalization (E) is C$3.001 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 two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Aug. 2022, Cascadero Copper's latest two-year average Short-Term Debt & Capital Lease Obligation was C$0.2335 Mil and its latest two-year average Long-Term Debt & Capital Lease Obligation was C$0 Mil. The total Book Value of Debt (D) is C$0.2335 Mil.
a) weight of equity = E / (E + D) = 3.001 / (3.001 + 0.2335) = 0.9278
b) weight of debt = D / (E + D) = 0.2335 / (3.001 + 0.2335) = 0.0722

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 3.17421053%. 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. Cascadero Copper's beta is 0.76.
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 = 3.17421053% + 0.76 * 6% = 7.7342%

3. Cost of Debt:
GuruFocus uses last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.
As of Nov. 2021, Cascadero Copper's interest expense (positive number) was C$0.115 Mil. Its total Book Value of Debt (D) is C$0.2335 Mil.
Cost of Debt = 0.115 / 0.2335 = 49.2505%.

4. Multiply by one minus Average Tax Rate:
GuruFocus uses the latest two-year average tax rate to do the calculation. The calculated average tax rate is limited to between 0% and 100%. If the calculated average tax rate is higher than 100%, it is set to 100%. If the calculated average tax rate is less than 0%, it is set to 0%.
The latest Two-year Average Tax Rate is 0%.

Cascadero Copper'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)
	=	0.9278	*	7.7342%	+	0.0722	*	49.2505%	*	(1 - 0%)
	=	10.73%

Cascadero Copper (TSXV:CCD) 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, Cascadero Copper's weighted average cost of capital is 10.73%. Cascadero Copper's ROIC % is -158.30% (calculated using TTM income statement data). Cascadero Copper earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.

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 last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.

Related Terms

Cascadero Copper (TSXV:CCD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Cascadero Copper Corp (TSXV:CCD) » Definitions » WACC %

Comparable Companies

Traded in Other Exchanges

CCEDF:USA C5C:Germany

Address

395 - 901 West Third Street, North Vancouver, BC, CAN, V7P 3P9

Website

https://www.cascadero.com

Cascadero Copper Corp is a Canada based integrated mineral exploration and development company. The company is in the exploration stage, and is engaged in the business segment of acquiring, exploring and developing mineral properties. It holds certain mineral properties in Argentina.