GTG.CN
Great Thunder Gold Corp
Price:  
0.34 
CAD
Volume:  
48,700.00
Canada | Metals & Mining
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GTG.CN WACC - Weighted Average Cost of Capital

The WACC of Great Thunder Gold Corp (GTG.CN) is 6.5%.

The Cost of Equity of Great Thunder Gold Corp (GTG.CN) is 9.25%.
The Cost of Debt of Great Thunder Gold Corp (GTG.CN) is 5.00%.

Range Selected
Cost of equity 6.90% - 11.60% 9.25%
Tax rate 26.50% - 26.50% 26.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.6% 6.5%
WACC

GTG.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.75 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 11.60%
Tax rate 26.50% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.6%
Selected WACC 6.5%

GTG.CN'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 GTG.CN:

cost_of_equity (9.25%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.75) + 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.