MAW.TO WACC - Weighted Average Cost of Capital
The WACC of Mawson Gold Ltd (MAW.TO) is 8.5%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.8% | 8.55% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 10.8% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.49 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 10.8% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAW.TO | Mawson Gold Ltd | 0.01 | 0.11 | 0.11 |
| AVL.TO | Avalon Advanced Materials Inc | 0.38 | 1.85 | 1.45 |
| AZM.V | Azimut Exploration Inc | 0 | 0.92 | 0.92 |
| CDB.V | Cordoba Minerals Corp | 0.03 | 2.29 | 2.24 |
| FMS.V | Focus Graphite Inc | 1.18 | -0.45 | -0.24 |
| INV.TO | INV Metals Inc | 0.01 | 1.94 | 1.93 |
| OM.V | Osisko Metals Inc | 0.2 | 0.96 | 0.83 |
| SRG.V | SRG Mining Inc | 0 | 0.25 | 0.25 |
| TSK.TO | Talisker Resources Ltd | 0.07 | 1.23 | 1.17 |
| UCU.V | Ucore Rare Metals Inc | 0.18 | 0.55 | 0.49 |
| Low | High | |
| Unlevered beta | 0.69 | 1.02 |
| Relevered beta | 0.24 | 0.94 |
| Adjusted relevered beta | 0.49 | 0.96 |
MAW.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 MAW.TO:
cost_of_equity (8.55%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.49) + 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.