LBC.V WACC - Weighted Average Cost of Capital
The WACC of Libero Copper & Gold Corp (LBC.V) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.7% | 10.15% |
| Tax rate | 3.8% - 7.1% | 5.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 11.5% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.93 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.7% |
| Tax rate | 3.8% | 7.1% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 11.5% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LBC.V | Libero Copper & Gold Corp | 0.03 | 0.65 | 0.64 |
| AMO.V | Altan Rio Minerals Ltd | 0.06 | 2 | 1.9 |
| NPR.V | North Peak Resources Ltd | 0 | 1.53 | 1.53 |
| UGM.V | UrbanGold Minerals Inc | 0.03 | 0.9 | 0.88 |
| VONE.V | Vanadium One Iron Corp | 0.29 | 1.45 | 1.14 |
| VTT.V | Vendetta Mining Corp | 0.02 | -0.25 | -0.24 |
| Low | High | |
| Unlevered beta | 0.88 | 1.14 |
| Relevered beta | 0.9 | 1.16 |
| Adjusted relevered beta | 0.93 | 1.11 |
LBC.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 LBC.V:
cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.