NUG.V
Nulegacy Gold Corp
Price:  
0.01 
CAD
Volume:  
646,000
Canada | Metals & Mining

NUG.V WACC - Weighted Average Cost of Capital

The WACC of Nulegacy Gold Corp (NUG.V) is 6.6%.

The Cost of Equity of Nulegacy Gold Corp (NUG.V) is 9.45%.
The Cost of Debt of Nulegacy Gold Corp (NUG.V) is 5%.

RangeSelected
Cost of equity7.3% - 11.6%9.45%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC5.5% - 7.6%6.6%
WACC

NUG.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.671.1
Additional risk adjustments0.0%0.5%
Cost of equity7.3%11.6%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.5%7.6%
Selected WACC6.6%

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.