CORA.L WACC - Weighted Average Cost of Capital
The WACC of Cora Gold Ltd (CORA.L) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.4% | 7.8% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.37 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.4% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CORA.L | Cora Gold Ltd | 0.29 | -0.34 | -0.28 |
| ALTN.L | Altyngold PLC | 0.42 | 0.12 | 0.09 |
| BZT.L | Bezant Resources PLC | 0.14 | 0.76 | 0.69 |
| CGNR.L | Conroy Gold and Natural Resources PLC | 0.06 | -1.46 | -1.39 |
| ENDO.ST | Endomines AB (publ) | 0.53 | 0.39 | 0.27 |
| GGP.L | Greatland Gold PLC | 0.02 | 1.51 | 1.48 |
| GRL.L | GoldStone Resources Ltd | 0.7 | 0.82 | 0.52 |
| PAF.L | Pan African Resources PLC | 0.12 | 1.15 | 1.05 |
| SGZ.L | Scotgold Resources Ltd | 1.07 | -0.04 | -0.02 |
| XTR.L | Xtract Resources PLC | 0.01 | -0.19 | -0.19 |
| Low | High | |
| Unlevered beta | 0.04 | 0.37 |
| Relevered beta | 0.06 | 0.46 |
| Adjusted relevered beta | 0.37 | 0.64 |
CORA.L'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 CORA.L:
cost_of_equity (7.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.