GCN.V WACC - Weighted Average Cost of Capital
The WACC of Goldcliff Resource Corp (GCN.V) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.8% - 12.7% | 9.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 10.1% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.58 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 12.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 10.1% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GCN.V | Goldcliff Resource Corp | 0.4 | -0.27 | -0.21 |
| APX.V | Apex Resources Inc | 0.03 | 0.74 | 0.73 |
| BTT.V | Bitterroot Resources Ltd | 0.07 | -0.01 | -0.01 |
| GRAT.V | Gratomic Inc | 0.18 | -0.87 | -0.77 |
| RBTK | Zhen Ding Resources Inc | 0.01 | 1.67 | 1.66 |
| SJL.V | Saint Jean Carbon Inc | 0.01 | 1.38 | 1.37 |
| ZNC.H.V | Zincore Metals Inc | 0.08 | 1.47 | 1.4 |
| Low | High | |
| Unlevered beta | 0.28 | 1.11 |
| Relevered beta | 0.37 | 1.43 |
| Adjusted relevered beta | 0.58 | 1.29 |
GCN.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 GCN.V:
cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.