OR.TO WACC - Weighted Average Cost of Capital

The WACC of Osisko Gold Royalties Ltd (OR.TO) is 9.3%.

The Cost of Equity of Osisko Gold Royalties Ltd (OR.TO) is 9.40%.

The Cost of Debt of Osisko Gold Royalties Ltd (OR.TO) is 4.80%.

	Range	Selected
Cost of equity	7.90% - 10.90%	9.40%
Tax rate	33.10% - 37.30%	35.20%
Cost of debt	4.00% - 5.60%	4.80%
WACC	7.8% - 10.8%	9.3%

WACC

OR.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.90%

Tax rate	33.10%	37.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	5.60%

After-tax WACC	7.8%	10.8%


Selected WACC	9.3%

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 (9.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + 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.