DJI.V WACC - Weighted Average Cost of Capital
The WACC of Dajin Resources Corp (DJI.V) is 9.5%.
| Range | Selected | |
| Cost of equity | 7.4% - 11.7% | 9.55% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 11.6% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.9 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 11.7% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 11.6% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DJI.V | Dajin Resources Corp | 0.01 | 0.42 | 0.42 |
| ADE.V | Adex Mining Inc | 0.77 | 2.88 | 1.84 |
| BEX.V | Benton Resources Inc | 0 | 1.39 | 1.39 |
| CMX.V | Chilean Metals Inc | 0.05 | 1.49 | 1.44 |
| GBRC.V | Gold Bull Resources Corp | 1 | -2.79 | -1.61 |
| MON.V | Montero Mining and Exploration Ltd | 0.02 | 0.73 | 0.72 |
| ORM.V | Orford Mining Corp | 1.19 | 1.63 | 0.87 |
| RYES | Rise Gold Corp | 0.43 | 2.94 | 2.24 |
| SNG.V | Silver Range Resources Ltd | 1.07 | -0.31 | -0.17 |
| WCC.V | Consolidated Woodjam Copper Corp | 0.01 | 1.74 | 1.73 |
| Low | High | |
| Unlevered beta | 0.81 | 1.41 |
| Relevered beta | 0.85 | 1.46 |
| Adjusted relevered beta | 0.9 | 1.31 |
DJI.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 DJI.V:
cost_of_equity (9.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.9) + 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.