NSG.CN
Northstar Gold Corp
Price:  
0.03 
CAD
Volume:  
157,501
Canada | Mining

NSG.CN WACC - Weighted Average Cost of Capital

The WACC of Northstar Gold Corp (NSG.CN) is 5.3%.

The Cost of Equity of Northstar Gold Corp (NSG.CN) is 6.85%.
The Cost of Debt of Northstar Gold Corp (NSG.CN) is 5%.

RangeSelected
Cost of equity3.6% - 10.1%6.85%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC3.7% - 6.9%5.3%
WACC

NSG.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.090.98
Additional risk adjustments0.0%0.5%
Cost of equity3.6%10.1%
Tax rate25.9%26.5%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC3.7%6.9%
Selected WACC5.3%

NSG.CN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.070.61
Relevered beta-0.360.97
Adjusted relevered beta0.090.98

NSG.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 NSG.CN:

cost_of_equity (6.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.09) + 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.