ARIS.TO WACC - Weighted Average Cost of Capital
The WACC of Aris Gold Corp (ARIS.TO) is 8.1%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.3% | 9.9% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 4.4% - 6.8% | 5.6% |
| WACC | 6.9% - 9.3% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.05 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.3% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.4% | 6.8% |
| After-tax WACC | 6.9% | 9.3% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARIS.TO | Aris Gold Corp | 0.46 | 1.17 | 0.88 |
| FVL.TO | Freegold Ventures Ltd | 0 | 1.34 | 1.34 |
| GAU.TO | Galiano Gold Inc | 0.12 | 1.13 | 1.04 |
| GOLD.TO | GoldMining Inc | 0 | 0.77 | 0.77 |
| GSV.TO | Gold Standard Ventures Corp | 0 | 0.81 | 0.81 |
| HYMC | Hycroft Mining Holding Corporation | 1.07 | 0.96 | 0.54 |
| KOR.TO | Corvus Gold Inc | 0.01 | 1.45 | 1.44 |
| MKO.V | Mako Mining Corp | 0.02 | 0.82 | 0.8 |
| MOZ.TO | Marathon Gold Corp | 0.09 | 1.57 | 1.47 |
| ORE.V | Orezone Gold Corp | 0 | 0.61 | 0.61 |
| Low | High | |
| Unlevered beta | 0.81 | 0.94 |
| Relevered beta | 1.07 | 1.27 |
| Adjusted relevered beta | 1.05 | 1.18 |
ARIS.TO'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 ARIS.TO:
cost_of_equity (9.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.05) + 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.