OR.TO
Osisko Gold Royalties Ltd
Price:  
35 
CAD
Volume:  
125,585
Canada | Metals & Mining

OR.TO WACC - Weighted Average Cost of Capital

The WACC of Osisko Gold Royalties Ltd (OR.TO) is 9.0%.

The Cost of Equity of Osisko Gold Royalties Ltd (OR.TO) is 9.1%.
The Cost of Debt of Osisko Gold Royalties Ltd (OR.TO) is 4.8%.

RangeSelected
Cost of equity7.8% - 10.4%9.1%
Tax rate33.1% - 37.3%35.2%
Cost of debt4.0% - 5.6%4.8%
WACC7.7% - 10.3%9.0%
WACC

OR.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.911.02
Additional risk adjustments0.0%0.5%
Cost of equity7.8%10.4%
Tax rate33.1%37.3%
Debt/Equity ratio
0.020.02
Cost of debt4.0%5.6%
After-tax WACC7.7%10.3%
Selected WACC9.0%

OR.TO'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 OR.TO:

cost_of_equity (9.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + 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.