NGLD
Nevada Canyon Gold Corp
Price:  
0.95 
USD
Volume:  
16,180
United States | Mining

NGLD WACC - Weighted Average Cost of Capital

The WACC of Nevada Canyon Gold Corp (NGLD) is 10.3%.

The Cost of Equity of Nevada Canyon Gold Corp (NGLD) is 16.85%.
The Cost of Debt of Nevada Canyon Gold Corp (NGLD) is 5%.

RangeSelected
Cost of equity14.6% - 19.1%16.85%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC9.2% - 11.4%10.3%
WACC

NGLD WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta2.342.55
Additional risk adjustments0.0%0.5%
Cost of equity14.6%19.1%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC9.2%11.4%
Selected WACC10.3%

NGLD WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
NGLDNevada Canyon Gold Corp0.87-0.62-0.38
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
LowHigh
Unlevered beta1.231.74
Relevered beta33.31
Adjusted relevered beta2.342.55

NGLD'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 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.