IAU.TO
I-80 Gold Corp
Price:  
0.90 
CAD
Volume:  
206,573.00
Canada | Metals & Mining
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IAU.TO WACC - Weighted Average Cost of Capital

The WACC of I-80 Gold Corp (IAU.TO) is 9.5%.

The Cost of Equity of I-80 Gold Corp (IAU.TO) is 10.40%.
The Cost of Debt of I-80 Gold Corp (IAU.TO) is 7.00%.

Range Selected
Cost of equity 9.00% - 11.80% 10.40%
Tax rate 5.40% - 11.10% 8.25%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.5% - 10.6% 9.5%
WACC

IAU.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.14 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.80%
Tax rate 5.40% 11.10%
Debt/Equity ratio 0.27 0.27
Cost of debt 7.00% 7.00%
After-tax WACC 8.5% 10.6%
Selected WACC 9.5%

IAU.TO'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 IAU.TO:

cost_of_equity (10.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.