GOE.V WACC - Weighted Average Cost of Capital
The WACC of Goldeneye Resources Corp (GOE.V) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.5% | 7.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.4% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.38 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.4% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOE.V | Goldeneye Resources Corp | 0.02 | 2.65 | 2.62 |
| AM.V | Academy Metals Inc | 3.4 | 0.41 | 0.12 |
| ANG.V | Angel Gold Corp | 0.14 | 1.03 | 0.93 |
| AORO.V | Aloro Mining Corp | 0.2 | -2.63 | -2.3 |
| GBE.V | Lifestyle Global Brands Ltd | 1.57 | 1.04 | 0.48 |
| GDX.V | Goldex Resources Corp | 0.53 | -1.53 | -1.1 |
| LKAI | LKA Gold Inc | 54.87 | 35.95 | 0.88 |
| LRC.H.V | Lovitt Resources Inc | 1.62 | -0.86 | -0.4 |
| NMG.H.V | Noble Metal Group Inc | 0.86 | 0.71 | 0.44 |
| VAX.V | Vantex Resources Ltd | 0.3 | -0.56 | -0.46 |
| WRI.V | Waseco Resources Inc | 0.04 | -0.88 | -0.85 |
| Low | High | |
| Unlevered beta | -0.4 | 0.44 |
| Relevered beta | 0.07 | 0.27 |
| Adjusted relevered beta | 0.38 | 0.51 |
GOE.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 GOE.V:
cost_of_equity (7.35%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.38) + 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.