GLO.TO WACC - Weighted Average Cost of Capital
The WACC of Global Atomic Corp (GLO.TO) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.6% - 9.3% | 7.45% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.6% - 9.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.49 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 9.3% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.6% | 9.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GLO.TO | Global Atomic Corp | 0.02 | 2.13 | 2.09 |
| BSR.V | Bluestone Resources Inc | 0.17 | 0.69 | 0.61 |
| EMX.V | EMX Royalty Corp | 0.1 | 1.05 | 0.98 |
| ESK.V | Eskay Mining Corp | 0.06 | 1.23 | 1.17 |
| HPQ.V | HPQ Silicon Resources Inc | 0 | -0.2 | -0.2 |
| LI.V | American Lithium Corp | 0 | 1.99 | 1.99 |
| MIN.TO | Excelsior Mining Corp | 0.58 | 0.35 | 0.25 |
| NB.TO | NioCorp Developments Ltd | 0.05 | -1.78 | -1.72 |
| NCU.TO | Nevada Copper Corp | 7.58 | 1.28 | 0.19 |
| NEXT.TO | NextSource Materials Inc | 0.93 | -0.07 | -0.04 |
| NLC.V | Neo Lithium Corp | 0 | 1.93 | 1.93 |
| Low | High | |
| Unlevered beta | 0.25 | 0.98 |
| Relevered beta | 0.24 | 0.78 |
| Adjusted relevered beta | 0.49 | 0.85 |
GLO.TO'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 GLO.TO:
cost_of_equity (7.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.