ARQ.CN WACC - Weighted Average Cost of Capital

The WACC of Argo Gold Inc (ARQ.CN) is 8.7%.

The Cost of Equity of Argo Gold Inc (ARQ.CN) is 9.40%.

The Cost of Debt of Argo Gold Inc (ARQ.CN) is 6.80%.

	Range	Selected
Cost of equity	6.40% - 12.40%	9.40%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	6.80% - 6.80%	6.80%
WACC	6.2% - 11.2%	8.7%

WACC

ARQ.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.64	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	12.40%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.80%	6.80%

After-tax WACC	6.2%	11.2%


Selected WACC	8.7%

ARQ.CN'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 ARQ.CN:

cost_of_equity (9.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.