LION.CN WACC - Weighted Average Cost of Capital
The WACC of Global Li-Ion Graphite Corp (LION.CN) is 4.3%.
| Range | Selected | |
| Cost of equity | 3.1% - 6.1% | 4.6% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.3% - 5.4% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | -0.11 | 0.23 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 3.1% | 6.1% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.3% | 5.4% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LION.CN | Global Li-Ion Graphite Corp | 0.43 | -0.92 | -0.7 |
| AL.V | Alx Resources Corp | 0.01 | -0.66 | -0.66 |
| AME.V | Abacus Mining and Exploration Corp | 7.28 | -1.1 | -0.17 |
| CEM.V | Constantine Metal Resources Ltd | 0.07 | 1.4 | 1.33 |
| CML.V | CaNickel Mining Ltd | 130.48 | -1.04 | -0.01 |
| EGM.V | EnGold Mines Ltd | 0.89 | -1.42 | -0.86 |
| EV.V | Erin Ventures Inc | 0.01 | -0.39 | -0.39 |
| GTC.V | Getty Copper Inc | 0.33 | -0.88 | -0.71 |
| MLY.V | American CuMo Mining Corp | 1.09 | 1.05 | 0.58 |
| RG.V | Romios Gold Resources Inc | 0.02 | 0.62 | 0.61 |
| Low | High | |
| Unlevered beta | -0.5 | -0.11 |
| Relevered beta | -0.66 | -0.15 |
| Adjusted relevered beta | -0.11 | 0.23 |
LION.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 LION.CN:
cost_of_equity (4.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.11) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.