NSE.V WACC - Weighted Average Cost of Capital
The WACC of New Stratus Energy Inc (NSE.V) is 8.1%.
| Range | Selected | |
| Cost of equity | 8.2% - 14.6% | 11.4% |
| Tax rate | 0.0% - 6.7% | 3.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 9.7% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.85 | 1.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 14.6% |
| Tax rate | 0.0% | 6.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 9.7% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NSE.V | New Stratus Energy Inc | 1 | 3.07 | 1.53 |
| BAU.V | Blue Star Gold Corp | 0.1 | 1.49 | 1.35 |
| GCX.V | Granite Creek Copper Ltd | 0.05 | 0.99 | 0.95 |
| JSHG | Joshua Gold Resources Inc | 0.19 | -0.26 | -0.22 |
| MOJ.CN | Mojave Gold Corp | 0.01 | 0.96 | 0.96 |
| NVX.V | NV Gold Corp | 0.29 | -0.5 | -0.39 |
| PGLD.V | P2 Gold Inc | 0.02 | 1.88 | 1.83 |
| PLAN.V | Progressive Planet Solutions Inc | 0.33 | 0.63 | 0.48 |
| PSGR | Pershing Resources Company Inc | 0.03 | -0.53 | -0.52 |
| SGO.V | Sonoro Gold Corp | 0.15 | 2.07 | 1.8 |
| TTX.CN | Tantalex Resources Corp | 3.47 | 1.16 | 0.26 |
| Low | High | |
| Unlevered beta | 0.48 | 0.96 |
| Relevered beta | 0.78 | 1.9 |
| Adjusted relevered beta | 0.85 | 1.6 |
NSE.V'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 NSE.V:
cost_of_equity (11.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.