GLDX.V
Gold X Mining Corp
Price:  
3.61 
CAD
Volume:  
138,770
Canada | Metals & Mining

GLDX.V WACC - Weighted Average Cost of Capital

The WACC of Gold X Mining Corp (GLDX.V) is 8.7%.

The Cost of Equity of Gold X Mining Corp (GLDX.V) is 13.75%.
The Cost of Debt of Gold X Mining Corp (GLDX.V) is 5%.

RangeSelected
Cost of equity12.2% - 15.3%13.75%
Tax rate27.0% - 27.0%27%
Cost of debt5.0% - 5.0%5%
WACC7.9% - 9.5%8.7%
WACC

GLDX.V WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.7%5.7%
Adjusted beta1.91.93
Additional risk adjustments0.0%0.5%
Cost of equity12.2%15.3%
Tax rate27.0%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.9%9.5%
Selected WACC8.7%

GLDX.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 GLDX.V:

cost_of_equity (13.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.9) + 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.