ARIS.TO
Aris Gold Corp
Price:  
7.41 
CAD
Volume:  
123,630.00
Canada | Metals & Mining
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ARIS.TO WACC - Weighted Average Cost of Capital

The WACC of Aris Gold Corp (ARIS.TO) is 8.9%.

The Cost of Equity of Aris Gold Corp (ARIS.TO) is 11.70%.
The Cost of Debt of Aris Gold Corp (ARIS.TO) is 5.40%.

Range Selected
Cost of equity 9.60% - 13.80% 11.70%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 6.80% 5.40%
WACC 7.2% - 10.6% 8.9%
WACC

ARIS.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.26 1.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 13.80%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.57 0.57
Cost of debt 4.00% 6.80%
After-tax WACC 7.2% 10.6%
Selected WACC 8.9%

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 (11.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.26) + 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.