ELD.TO
Eldorado Gold Corp
Price:  
27.25 
CAD
Volume:  
99,504.00
Canada | Metals & Mining
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ELD.TO WACC - Weighted Average Cost of Capital

The WACC of Eldorado Gold Corp (ELD.TO) is 9.1%.

The Cost of Equity of Eldorado Gold Corp (ELD.TO) is 10.40%.
The Cost of Debt of Eldorado Gold Corp (ELD.TO) is 4.50%.

Range Selected
Cost of equity 8.90% - 11.90% 10.40%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 4.00% - 5.00% 4.50%
WACC 7.8% - 10.4% 9.1%
WACC

ELD.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.12 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.90%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.00% 5.00%
After-tax WACC 7.8% 10.4%
Selected WACC 9.1%

ELD.TO'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 ELD.TO:

cost_of_equity (10.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.12) + 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.