The WACC of Nevada Canyon Gold Corp (NGLD) is 10.3%.
Range | Selected | |
Cost of equity | 14.6% - 19.1% | 16.85% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 9.2% - 11.4% | 10.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 2.34 | 2.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 14.6% | 19.1% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 9.2% | 11.4% |
Selected WACC | 10.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NGLD | Nevada Canyon Gold Corp | 0.87 | -0.62 | -0.38 |
ADG.V | Arcus Development Group Inc | 0.04 | 1.96 | 1.91 |
LMGC.V | Le Mare Gold Corp | 0.02 | 1.07 | 1.06 |
MFX.V | Minfocus Exploration Corp | 0.01 | 1.96 | 1.94 |
Low | High | |
Unlevered beta | 1.23 | 1.74 |
Relevered beta | 3 | 3.31 |
Adjusted relevered beta | 2.34 | 2.55 |
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 NGLD:
cost_of_equity (16.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.34) + 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.