GDIG.CN
Gold Digger Resources Inc
Price:  
0.27 
CAD
Volume:  
9,550
Canada | Mining

GDIG.CN WACC - Weighted Average Cost of Capital

The WACC of Gold Digger Resources Inc (GDIG.CN) is 3.7%.

The Cost of Equity of Gold Digger Resources Inc (GDIG.CN) is 3.75%.
The Cost of Debt of Gold Digger Resources Inc (GDIG.CN) is 5%.

RangeSelected
Cost of equity3.3% - 4.2%3.75%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC3.5% - 3.9%3.7%
WACC

GDIG.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta-0.16-0.16
Additional risk adjustments1.0%1.5%
Cost of equity3.3%4.2%
Tax rate25.9%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC3.5%3.9%
Selected WACC3.7%

GDIG.CN WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
GDIG.CNGold Digger Resources Inc1.07-0.43-0.24
LowHigh
Unlevered beta-0.24-0.24
Relevered beta-0.73-0.73
Adjusted relevered beta-0.16-0.16

GDIG.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 GDIG.CN:

cost_of_equity (3.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.16) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.