NUG.V WACC - Weighted Average Cost of Capital
The WACC of Nulegacy Gold Corp (NUG.V) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.3% - 11.6% | 9.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.6% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.67 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 11.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.6% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NUG.V | Nulegacy Gold Corp | 1.05 | -0.67 | -0.38 |
| AEX.V | AEX Gold Inc | 0.01 | 0.18 | 0.18 |
| CAND.V | Candelaria Mining Corp | 2.17 | 0.97 | 0.38 |
| DTRC | Dakota Territory Resource Corp | 0 | -1.56 | -1.55 |
| ECR.V | Cartier Resources Inc | 0 | 1.11 | 1.1 |
| KORE.V | Kore Mining Ltd | 0.01 | 1.26 | 1.24 |
| MAU.V | Montage Gold Corp | 0 | 1.34 | 1.34 |
| MGM.V | Maple Gold Mines Ltd | 0.01 | -0.51 | -0.51 |
| MJS.V | Majestic Gold Corp | 0 | 0.37 | 0.37 |
| RYR.V | Royal Road Minerals Ltd | 0 | 1.23 | 1.23 |
| VVC.V | VVC Exploration Corp | 0.15 | -0.03 | -0.02 |
| Low | High | |
| Unlevered beta | 0.18 | 0.38 |
| Relevered beta | 0.51 | 1.15 |
| Adjusted relevered beta | 0.67 | 1.1 |
NUG.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 NUG.V:
cost_of_equity (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.