GBAR.TO WACC - Weighted Average Cost of Capital

The WACC of Monarch Mining Corp (GBAR.TO) is 9.4%.

The Cost of Equity of Monarch Mining Corp (GBAR.TO) is 60.40%.

The Cost of Debt of Monarch Mining Corp (GBAR.TO) is 5.00%.

	Range	Selected
Cost of equity	54.30% - 66.50%	60.40%
Tax rate	4.20% - 8.30%	6.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.0% - 9.8%	9.4%

WACC

GBAR.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	10.03	10.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	54.30%	66.50%

Tax rate	4.20%	8.30%
Debt/Equity ratio	10.89	10.89
Cost of debt	5.00%	5.00%

After-tax WACC	9.0%	9.8%


Selected WACC	9.4%

GBAR.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 GBAR.TO:

cost_of_equity (60.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (10.03) + 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.