ARIC.V WACC - Weighted Average Cost of Capital
The WACC of Awale Resources Ltd (ARIC.V) is 4.9%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.3% | 6.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.5% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.21 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.5% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARIC.V | Awale Resources Ltd | 0.97 | 0.77 | 0.45 |
| CAMP.CN | Canadian Goldcamps Corp | 0.03 | 0.07 | 0.07 |
| GLNS | Golden Star Resource Corp | 0.03 | -0.64 | -0.62 |
| GRAY.CN | Graycliff Exploration Ltd | 0.12 | 1.78 | 1.64 |
| ITKO.CN | Idaho Champion Gold Mines Canada Inc | 0 | 0.04 | 0.04 |
| MAGE | Magellan Gold Corp | 0.3 | -1.79 | -1.47 |
| OTS.H.V | Optimus Gold Corp | 0.09 | -0.21 | -0.2 |
| USGD.CN | American Pacific Mining Corp | 0.04 | 1.33 | 1.29 |
| Low | High | |
| Unlevered beta | -0.01 | 0.15 |
| Relevered beta | -0.18 | 0.1 |
| Adjusted relevered beta | 0.21 | 0.4 |
ARIC.V'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 ARIC.V:
cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.21) + 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.