JZR.V WACC - Weighted Average Cost of Capital
The WACC of Jazz Resources Inc (JZR.V) is 7.7%.
| Range | Selected | |
| Cost of equity | 5.1% - 10.6% | 7.85% |
| Tax rate | 0.3% - 1.4% | 0.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 10.3% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.24 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 10.6% |
| Tax rate | 0.3% | 1.4% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 10.3% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JZR.V | Jazz Resources Inc | 0.06 | -0.73 | -0.69 |
| BDGC.V | Boundary Gold and Copper Mining Ltd | 0.04 | 1.63 | 1.57 |
| BMIN | Britannia Mining Inc | 0.01 | 0.58 | 0.58 |
| CDC.V | Cadillac Ventures Inc | 0.23 | 1.59 | 1.29 |
| CONE.V | Canada One Mining Corp | 0.29 | -1.58 | -1.22 |
| GCC.V | Golden Cariboo Resources Ltd | 0 | 1.49 | 1.48 |
| RMO.V | Rainy Mountain Royalty Corp | 0.6 | -0.5 | -0.31 |
| SUPR.V | Supernova Metals Corp | 0.02 | 1.55 | 1.51 |
| TRS.V | Tres-Or Resources Ltd | 0.01 | -0.7 | -0.7 |
| Low | High | |
| Unlevered beta | -0.14 | 1.15 |
| Relevered beta | -0.13 | 0.91 |
| Adjusted relevered beta | 0.24 | 0.94 |
JZR.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 JZR.V:
cost_of_equity (7.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.24) + 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.