CRVC.CN WACC - Weighted Average Cost of Capital
The WACC of Cross River Ventures Corp (CRVC.CN) is 5.0%.
| Range | Selected | |
| Cost of equity | 4.1% - 8.5% | 6.3% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.9% - 6.1% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.18 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.1% | 8.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.9% | 6.1% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRVC.CN | Cross River Ventures Corp | 1.14 | 1.02 | 0.56 |
| CRES.CN | Crest Resources Inc | 0.01 | -1.71 | -1.7 |
| FMN.V | Fidelity Minerals Corp | 0.12 | 1.57 | 1.45 |
| GOFF | Goff Corp | 0.84 | 1.39 | 0.86 |
| MCU.V | Mega Copper Ltd | 0.01 | 0.26 | 0.26 |
| MUR.V | Murchison Minerals Ltd | 0.01 | -0.93 | -0.93 |
| RMRK | Rimrock Gold Corp | 0.93 | -0.58 | -0.35 |
| ROVR.V | Rover Metals Corp | 0.01 | 2.06 | 2.04 |
| TKU.V | Tarku Resources Ltd | 0.13 | 0.48 | 0.44 |
| VRDR | Verde Resources Inc | 0.01 | -0.32 | -0.32 |
| Low | High | |
| Unlevered beta | 0.03 | 0.49 |
| Relevered beta | -0.22 | 0.58 |
| Adjusted relevered beta | 0.18 | 0.72 |
CRVC.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 CRVC.CN:
cost_of_equity (6.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.18) + 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.