GOFF WACC - Weighted Average Cost of Capital
The WACC of Goff Corp (GOFF) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.1% | 7.4% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 9.1% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.61 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.1% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 9.1% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOFF | Goff Corp | 0.84 | 1.39 | 0.86 |
| CRTS.V | Cortus Metals Inc | 0.16 | -0.37 | -0.33 |
| FTJ.V | Fort St James Nickel Corp | 0.16 | -0.02 | -0.02 |
| MCU.V | Mega Copper Ltd | 0.01 | 0.26 | 0.26 |
| MUR.V | Murchison Minerals Ltd | 0.01 | -0.64 | -0.63 |
| RMRK | Rimrock Gold Corp | 1.25 | -0.93 | -0.48 |
| ROVR.V | Rover Metals Corp | 0.05 | 1.78 | 1.71 |
| TKU.V | Tarku Resources Ltd | 0.13 | 0.35 | 0.32 |
| Low | High | |
| Unlevered beta | -0.08 | 0.27 |
| Relevered beta | 0.42 | 0.93 |
| Adjusted relevered beta | 0.61 | 0.95 |
GOFF'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 GOFF:
cost_of_equity (7.40%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.61) + 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.