GSH.V WACC - Weighted Average Cost of Capital
The WACC of Golden Share Resources Corp (GSH.V) is 8.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.6% | 8.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 10.4% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 10.4% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GSH.V | Golden Share Resources Corp | 0.03 | 0.84 | 0.83 |
| AUQ.V | AuQ Gold Mining Inc | 0.04 | -0.06 | -0.06 |
| BLXX | Blox Inc | 0.15 | 1.11 | 1 |
| CIO.V | Central Iron Ore Ltd | 1.03 | 2.2 | 1.26 |
| FGC.V | Frontline Gold Corp | 0.12 | -0.16 | -0.15 |
| LMG.V | Lincoln Gold Mining Inc | 0.63 | -1.26 | -0.86 |
| RAK.V | Rackla Metals Inc | 0 | 1.16 | 1.16 |
| VGD.V | Visible Gold Mines Inc | 0.03 | 0.38 | 0.37 |
| WGF.V | Wescan Goldfields Inc | 0.05 | 0.91 | 0.87 |
| WRI.V | Waseco Resources Inc | 0.04 | -0.88 | -0.85 |
| Low | High | |
| Unlevered beta | 0.2 | 0.85 |
| Relevered beta | 0.21 | 0.91 |
| Adjusted relevered beta | 0.47 | 0.94 |
GSH.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 GSH.V:
cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.