The WACC of Goldrea Resources Corp (GOR.CN) is 5.7%.
Range | Selected | |
Cost of equity | 5.3% - 10.0% | 7.65% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.5% - 6.8% | 5.7% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.42 | 0.96 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.3% | 10.0% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.5% | 6.8% |
Selected WACC | 5.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
GOR.CN | Goldrea Resources Corp | 1.04 | 2.09 | 1.18 |
BMIN | Britannia Mining Inc | 0.01 | 0.58 | 0.58 |
CDC.V | Cadillac Ventures Inc | 0.23 | 1.59 | 1.36 |
GCC.V | Golden Cariboo Resources Ltd | 0 | 1.49 | 1.49 |
JZR.V | Jazz Resources Inc | 0.06 | -0.73 | -0.7 |
SFX.V | Sphinx Resources Ltd | 0.03 | 0.4 | 0.39 |
SUPR.V | Supernova Metals Corp | 0.02 | 1.55 | 1.52 |
SXL.V | Slam Exploration Ltd | 0.01 | -1.13 | -1.13 |
TRS.V | Tres-Or Resources Ltd | 0.01 | -0.7 | -0.7 |
Low | High | |
Unlevered beta | 0.43 | 1.06 |
Relevered beta | 0.13 | 0.94 |
Adjusted relevered beta | 0.42 | 0.96 |
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 GOR.CN:
cost_of_equity (7.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.