GBAR.TO WACC - Weighted Average Cost of Capital

The WACC of Monarch Mining Corp (GBAR.TO) is 8.4%.

The Cost of Equity of Monarch Mining Corp (GBAR.TO) is 48.35%.

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

	Range	Selected
Cost of equity	41.90% - 54.80%	48.35%
Tax rate	4.20% - 8.30%	6.25%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.9% - 8.8%	8.4%

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	7.59	8.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	41.90%	54.80%

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

After-tax WACC	7.9%	8.8%


Selected WACC	8.4%

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 (48.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (7.59) + 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.