GAL.V WACC - Weighted Average Cost of Capital
The WACC of Galantas Gold Corp (GAL.V) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.8% - 10.4% | 7.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.0% - 5.6% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.19 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 10.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.49 | 2.49 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.0% | 5.6% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GAL.V | Galantas Gold Corp | 2.49 | 0.78 | 0.28 |
| AUL.V | Aurelius Minerals Inc | 0.36 | -0.06 | -0.05 |
| EMR.V | Emgold Mining Corp | 0.02 | 1.67 | 1.65 |
| LOT.V | TomaGold Corp | 0.04 | -0.46 | -0.45 |
| MAS.V | MAS Gold Corp | 0.03 | 1.72 | 1.68 |
| MCI.V | Minnova Corp | 0.03 | 0.35 | 0.34 |
| NSAU.CN | MegumaGold Corp | 0.13 | -0.43 | -0.4 |
| PMC.CN | Peloton Minerals Corp | 0.03 | -0.12 | -0.12 |
| PX.V | Pelangio Exploration Inc | 0 | 0.78 | 0.77 |
| WHY.V | West High Yield WHY Resources Ltd | 0.18 | -0.7 | -0.62 |
| Low | High | |
| Unlevered beta | -0.08 | 0.3 |
| Relevered beta | -0.21 | 0.85 |
| Adjusted relevered beta | 0.19 | 0.9 |
GAL.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 GAL.V:
cost_of_equity (7.60%) = 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.