LECR.CN WACC - Weighted Average Cost of Capital
The WACC of Leocor Gold Inc (LECR.CN) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.9% | 5.85% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.3% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.9% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.3% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LECR.CN | Leocor Gold Inc | 1.07 | -0.59 | -0.33 |
| BJB.CN | Bond Resources Inc | 1.63 | -0.08 | -0.04 |
| HWY.V | Highway 50 Gold Corp | 0.05 | 0.14 | 0.13 |
| ITKO.CN | Idaho Champion Gold Mines Canada Inc | 0 | 0.04 | 0.04 |
| KTR.V | Kintavar Exploration Inc | 0.63 | 1.39 | 0.95 |
| LEXI.V | Lithium Energi Exploration Inc | 1.82 | 1.44 | 0.61 |
| OTS.H.V | Optimus Gold Corp | 0.08 | -0.59 | -0.56 |
| TOC.CN | Tocvan Ventures Corp | 0.02 | -0.05 | -0.05 |
| Low | High | |
| Unlevered beta | -0.04 | 0.06 |
| Relevered beta | -0.01 | 0.16 |
| Adjusted relevered beta | 0.32 | 0.44 |
LECR.CN'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 LECR.CN:
cost_of_equity (5.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.