AUMB.V WACC - Weighted Average Cost of Capital
The WACC of 1911 Gold Corp (AUMB.V) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.5% | 6.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.6% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.6% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AUMB.V | 1911 Gold Corp | 0.9 | 2.08 | 1.25 |
| AXM.V | AXMIN Inc | 0.06 | -1.13 | -1.08 |
| BRNE | Borneo Resource Investments Ltd | 127.06 | 0.41 | 0 |
| DYNR | Dynaresource Inc | 0.3 | 0.13 | 0.11 |
| GYPHQ | Gryphon Gold Corp | 607.93 | 0 | 0 |
| IMII | Inception Mining Inc | 0.8 | 1.62 | 1.02 |
| MM.CN | Metallica Metals Corp | 0 | 1.49 | 1.49 |
| MTU.V | Manitou Gold Inc | 0 | 0.96 | 0.96 |
| NGE.V | Nevada Exploration Inc | 0.08 | -0.2 | -0.19 |
| XIM.V | Ximen Mining Corp | 0.08 | -0.18 | -0.17 |
| YRB.TO | Les Ressources Yorbeau Inc | 0 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | 0 | 0.11 |
| Relevered beta | 0 | 0.15 |
| Adjusted relevered beta | 0.33 | 0.43 |
AUMB.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 AUMB.V:
cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.