EMR.V WACC - Weighted Average Cost of Capital
The WACC of Emgold Mining Corp (EMR.V) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.5% | 5.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.4% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.11 | 0.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.4% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EMR.V | Emgold Mining Corp | 0.02 | 1.81 | 1.79 |
| AUL.V | Aurelius Minerals Inc | 0.36 | -0.06 | -0.05 |
| GLB.V | Goldbank Mining Corp | 0 | 1.56 | 1.56 |
| LOT.V | TomaGold Corp | 0.04 | -0.58 | -0.57 |
| NSAU.CN | MegumaGold Corp | 0.13 | -0.43 | -0.4 |
| PMC.CN | Peloton Minerals Corp | 0.03 | -0.14 | -0.14 |
| PX.V | Pelangio Exploration Inc | 0 | 0.73 | 0.73 |
| TEM.V | Tembo Gold Corp | 0.02 | -0.28 | -0.27 |
| WHY.V | West High Yield WHY Resources Ltd | 0.14 | -0.63 | -0.57 |
| XGC.V | Xali Gold Corp | 0.01 | -0.65 | -0.64 |
| Low | High | |
| Unlevered beta | -0.32 | -0.1 |
| Relevered beta | -0.33 | -0.1 |
| Adjusted relevered beta | 0.11 | 0.26 |
EMR.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 EMR.V:
cost_of_equity (5.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.11) + 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.