GCP.CN WACC - Weighted Average Cost of Capital
The WACC of Golcap Resources Corp (GCP.CN) is 6.4%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.8% | 6.35% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 7.8% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.35 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 7.8% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GCP.CN | Golcap Resources Corp | 0 | 0.62 | 0.62 |
| ACP.V | ArcPacific Resources Corp | 0.03 | 0.96 | 0.94 |
| CRTS.V | Cortus Metals Inc | 0.16 | -0.37 | -0.33 |
| FTJ.V | Fort St James Nickel Corp | 0.11 | -0.02 | -0.02 |
| GGX.V | Ggx Gold Corp | 0.6 | -1.45 | -1.01 |
| GOFF | Goff Corp | 0.84 | 1.39 | 0.86 |
| IMI.V | International Millennium Mining Corp | 0.02 | 0.07 | 0.07 |
| MCU.V | Mega Copper Ltd | 0.01 | 0.26 | 0.26 |
| MUR.V | Murchison Minerals Ltd | 0.01 | -0.6 | -0.6 |
| ROVR.V | Rover Metals Corp | 0.02 | 1.86 | 1.84 |
| Low | High | |
| Unlevered beta | 0.03 | 0.4 |
| Relevered beta | 0.03 | 0.4 |
| Adjusted relevered beta | 0.35 | 0.6 |
GCP.CN'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 GCP.CN:
cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.