The WACC of Bond Resources Inc (BJB.CN) is 4.8%.
Range | Selected | |
Cost of equity | 4.9% - 8.3% | 6.6% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.2% - 5.5% | 4.8% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.35 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.9% | 8.3% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 1.6 | 1.6 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.2% | 5.5% |
Selected WACC | 4.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BJB.CN | Bond Resources Inc | 1.6 | -0.08 | -0.04 |
AOC.CN | Advantagewon Oil Corp | 0.08 | 1.87 | 1.76 |
HWY.V | Highway 50 Gold Corp | 0.07 | 0.11 | 0.11 |
ITKO.CN | Idaho Champion Gold Mines Canada Inc | 0 | 0.04 | 0.04 |
KTR.V | Kintavar Exploration Inc | 0.47 | 1.39 | 1.03 |
LEXI.V | Lithium Energi Exploration Inc | 1.82 | 1.05 | 0.45 |
OTS.H.V | Optimus Gold Corp | 0.09 | -0.59 | -0.55 |
PSGR | Pershing Resources Company Inc | 0.02 | -0.7 | -0.69 |
SGO.V | Sonoro Gold Corp | 0.15 | 1.97 | 1.78 |
TOC.CN | Tocvan Ventures Corp | 0.02 | -0.05 | -0.05 |
Low | High | |
Unlevered beta | 0.01 | 0.24 |
Relevered beta | 0.03 | 0.54 |
Adjusted relevered beta | 0.35 | 0.69 |
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 BJB.CN:
cost_of_equity (6.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.