KOR.TO WACC - Weighted Average Cost of Capital
The WACC of Corvus Gold Inc (KOR.TO) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.5% | 9.85% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 11.4% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.02 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.5% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 11.4% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KOR.TO | Corvus Gold Inc | 0.01 | 1.45 | 1.44 |
| AOT.TO | Ascot Resources Ltd | 0.49 | 2.96 | 2.18 |
| BNAU.TO | Battle North Gold Corp | 0 | 1.74 | 1.74 |
| BSX.TO | Belo Sun Mining Corp | 1 | 0.97 | 0.56 |
| FF.TO | First Mining Gold Corp | 0 | 0.86 | 0.86 |
| GOLD.TO | GoldMining Inc | 0 | 0.71 | 0.71 |
| ME.TO | Moneta Porcupine Mines Inc | 0 | 0.59 | 0.59 |
| MKO.V | Mako Mining Corp | 0.02 | 0.95 | 0.94 |
| ORE.V | Orezone Gold Corp | 0 | 0.61 | 0.61 |
| STAL | Star Alliance International Corp | 2.61 | 0.45 | 0.15 |
| Low | High | |
| Unlevered beta | 0.67 | 0.89 |
| Relevered beta | 1.03 | 1.37 |
| Adjusted relevered beta | 1.02 | 1.25 |
KOR.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 KOR.TO:
cost_of_equity (9.85%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (1.02) + 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.