GBU.V WACC - Weighted Average Cost of Capital
The WACC of Gabriel Resources Ltd (GBU.V) is 9.5%.
| Range | Selected | |
| Cost of equity | 13.5% - 17.0% | 15.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 10.3% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.89 | 1.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 17.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 10.3% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GBU.V | Gabriel Resources Ltd | 1 | 0.8 | 0.46 |
| ITR.V | Integra Resources Corp | 0.03 | 1.49 | 1.45 |
| LIO.V | Lion One Metals Ltd | 0.43 | 1.87 | 1.42 |
| OIII.V | O3 Mining Inc | 0.04 | -0.38 | -0.37 |
| ORG.V | Orca Gold Inc | 0 | 0.53 | 0.53 |
| PRB.V | Probe Metals Inc | 0 | 1.39 | 1.38 |
| RIO.V | Rio2 Ltd | 0 | 1.53 | 1.53 |
| RYR.V | Royal Road Minerals Ltd | 0 | 1.29 | 1.29 |
| THX.V | Thor Explorations Ltd | 0.02 | 1.23 | 1.22 |
| TLG.TO | Troilus Gold Corp | 0 | 1.82 | 1.82 |
| TML.TO | Treasury Metals Inc | 0.3 | 1.78 | 1.46 |
| Low | High | |
| Unlevered beta | 1.29 | 1.42 |
| Relevered beta | 2.33 | 2.48 |
| Adjusted relevered beta | 1.89 | 1.99 |
GBU.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 GBU.V:
cost_of_equity (15.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.89) + 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.