GVR.V
Grosvenor Resource Corp
Price:  
0.04 
CAD
Volume:  
6,250.00
Canada | Metals & Mining
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GVR.V WACC - Weighted Average Cost of Capital

The WACC of Grosvenor Resource Corp (GVR.V) is 7.5%.

The Cost of Equity of Grosvenor Resource Corp (GVR.V) is 11.35%.
The Cost of Debt of Grosvenor Resource Corp (GVR.V) is 5.00%.

Range Selected
Cost of equity 8.30% - 14.40% 11.35%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 9.0% 7.5%
WACC

GVR.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.87 1.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 14.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 9.0%
Selected WACC 7.5%

GVR.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 GVR.V:

cost_of_equity (11.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.87) + 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.