LP.CN
Leopard Lake Gold Corp
Price:  
0.04 
CAD
Volume:  
83,960.00
Canada | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

LP.CN WACC - Weighted Average Cost of Capital

The WACC of Leopard Lake Gold Corp (LP.CN) is 3.0%.

The Cost of Equity of Leopard Lake Gold Corp (LP.CN) is 3.05%.
The Cost of Debt of Leopard Lake Gold Corp (LP.CN) is 5.00%.

Range Selected
Cost of equity 2.90% - 3.20% 3.05%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.2% - 2.9% 3.0%
WACC

LP.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -1.27 -1.27
Additional risk adjustments 6.5% 7.0%
Cost of equity 2.90% 3.20%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.04 0.04
Cost of debt 5.00% 5.00%
After-tax WACC 3.2% 2.9%
Selected WACC 3.0%

LP.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 LP.CN:

cost_of_equity (3.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-1.27) + risk_adjustments (6.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.