GTWO.V WACC - Weighted Average Cost of Capital
The WACC of G2 Goldfields Inc (GTWO.V) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.4% | 7.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.44 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GTWO.V | G2 Goldfields Inc | 1.03 | 0.01 | 0.01 |
| AGD.V | Antioquia Gold Inc (Pre-Reincorporation) | 28.7 | 0.29 | 0.01 |
| CCM.TO | Canagold Resources Ltd | 0 | 0.8 | 0.8 |
| ECR.V | Cartier Resources Inc | 0 | 1.32 | 1.32 |
| GPY.V | Golden Predator Mining Corp | 0 | 0.75 | 0.74 |
| GRC.TO | Gold Springs Resource Corp | 0 | 0.26 | 0.26 |
| MAE.V | Maritime Resources Corp | 0 | 0.86 | 0.86 |
| OCG.V | Outcrop Gold Corp | 0 | 1.79 | 1.79 |
| PZG | Paramount Gold Nevada Corp | 0.47 | 0.06 | 0.05 |
| VLC.V | Velocity Minerals Ltd | 0.01 | 1 | 1 |
| WHN.V | Westhaven Gold Corp | 0.01 | 2.88 | 2.86 |
| Low | High | |
| Unlevered beta | 0.74 | 0.86 |
| Relevered beta | 0.16 | 0.61 |
| Adjusted relevered beta | 0.44 | 0.74 |
GTWO.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 GTWO.V:
cost_of_equity (7.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.