ASE.CN WACC - Weighted Average Cost of Capital
The WACC of Asante Gold Corp (ASE.CN) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.9% | 6.95% |
| Tax rate | 2.4% - 5.1% | 3.75% |
| Cost of debt | 7.0% - 16.0% | 11.5% |
| WACC | 6.1% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.9% |
| Tax rate | 2.4% | 5.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 16.0% |
| After-tax WACC | 6.1% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASE.CN | Asante Gold Corp | 0.02 | 0.44 | 0.43 |
| BAT.V | Batero Gold Corp | 0.13 | 0.47 | 0.42 |
| CVB.V | Compass Gold Corp | 0.07 | 0.02 | 0.02 |
| GFG.V | GFG Resources Inc | 0 | 0.45 | 0.45 |
| GTR.V | Gatling Exploration Inc | 0.02 | 0.31 | 0.3 |
| MM.CN | Metallica Metals Corp | 0 | 1.49 | 1.49 |
| NGE.V | Nevada Exploration Inc | 0.08 | -0.2 | -0.19 |
| RDU.V | Radius Gold Inc | 0.01 | 1.99 | 1.97 |
| SOMA.V | Soma Gold Corp | 0.32 | 0.48 | 0.36 |
| VG.V | Volcanic Gold Mines Inc | 0.02 | 0.32 | 0.32 |
| Low | High | |
| Unlevered beta | 0.35 | 0.42 |
| Relevered beta | 0.36 | 0.43 |
| Adjusted relevered beta | 0.57 | 0.62 |
ASE.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 ASE.CN:
cost_of_equity (6.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.