The WACC of Idaho Champion Gold Mines Canada Inc (ITKO.CN) is 6.2%.
Range | Selected | |
Cost of equity | 4.9% - 7.4% | 6.15% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.9% - 7.4% | 6.2% |
Category | Low | High |
Long-term bond rate | 3.6% | 4.1% |
Equity market risk premium | 5.5% | 6.5% |
Adjusted beta | 0.25 | 0.43 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.9% | 7.4% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.9% | 7.4% |
Selected WACC | 6.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ITKO.CN | Idaho Champion Gold Mines Canada Inc | 0 | 0.04 | 0.04 |
AOC.CN | Advantagewon Oil Corp | 0.08 | 1.87 | 1.76 |
ARIC.V | Awale Resources Ltd | 1.16 | 0.96 | 0.52 |
HWY.V | Highway 50 Gold Corp | 0.07 | 0.26 | 0.25 |
KTR.V | Kintavar Exploration Inc | 0.63 | 1.39 | 0.95 |
LEXI.V | Lithium Energi Exploration Inc | 2.73 | 1.5 | 0.5 |
NXS.V | Nexus Gold Corp | 0.98 | 3.63 | 2.11 |
OTS.H.V | Optimus Gold Corp | 0.08 | -0.59 | -0.56 |
SGC.V | Solstice Gold Corp | 0.01 | 2.7 | 2.69 |
Low | High | |
Unlevered beta | 0.5 | 0.87 |
Relevered beta | -0.12 | 0.15 |
Adjusted relevered beta | 0.25 | 0.43 |
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 ITKO.CN:
cost_of_equity (6.15%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.25) + 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.