Euromax Resources Ltd (EOX.TO) WACC Analysis

As of May 25, 2025, Euromax Resources Ltd (EOX.TO) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Euromax Resources Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 10.2%, the cost of debt is 5.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.6% – 4.1%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 1.2 – 2.05
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.85

What It Means for Investors

With a selected WACC of 6.4%, Euromax Resources Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.