GDX.V WACC - Weighted Average Cost of Capital
The WACC of Goldex Resources Corp (GDX.V) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.4% | 6.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.1% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.53 | 0.53 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.1% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GDX.V | Goldex Resources Corp | 0.53 | -1.59 | -1.15 |
| AM.V | Academy Metals Inc | 3.4 | 0.41 | 0.12 |
| ANG.V | Angel Gold Corp | 0.14 | 1.03 | 0.93 |
| CSG.H.V | Cosigo Resources Ltd | 0.02 | 1.63 | 1.61 |
| GBE.V | Lifestyle Global Brands Ltd | 1.57 | 1.04 | 0.48 |
| LRC.H.V | Lovitt Resources Inc | 1.67 | -0.86 | -0.39 |
| RBYC | Ruby Creek Resources Inc | 0 | 0 | 0 |
| VAX.V | Vantex Resources Ltd | 0.28 | 0.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.19 |
| Relevered beta | 0 | 0.13 |
| Adjusted relevered beta | 0.33 | 0.42 |
GDX.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 GDX.V:
cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.