CZZ.V WACC - Weighted Average Cost of Capital
The WACC of Cleghorn Minerals Ltd (CZZ.V) is 6.0%.
| Range | Selected | |
| Cost of equity | 4.8% - 11.9% | 8.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 7.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.19 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 11.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 7.8% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CZZ.V | Cleghorn Minerals Ltd | 0.88 | 0.47 | 0.29 |
| AVNI | Arvana Inc | 0 | 1.22 | 1.22 |
| FNDM | Fund.Com Inc | 2.64 | 2.01 | 0.69 |
| KUR.H.V | Kure Technologies Inc | 0.93 | -2.04 | -1.21 |
| LLL.CN | Lanebury Growth Capital Ltd | 6.66 | -1.16 | -0.2 |
| LSMG | Lode-Star Mining Inc | 0.04 | -1.07 | -1.04 |
| PTEL | Pegasus Tel Inc | 0.02 | 1.2 | 1.18 |
| VBVT | Viabuilt Ventures Inc | 158.06 | 0 | 0 |
| Low | High | |
| Unlevered beta | -0.04 | 0.37 |
| Relevered beta | -0.21 | 1.22 |
| Adjusted relevered beta | 0.19 | 1.15 |
CZZ.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 CZZ.V:
cost_of_equity (8.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.19) + 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.