PGDC.V WACC - Weighted Average Cost of Capital

The WACC of Patagonia Gold Corp (PGDC.V) is 5.4%.

The Cost of Equity of Patagonia Gold Corp (PGDC.V) is 6.90%.

The Cost of Debt of Patagonia Gold Corp (PGDC.V) is 5.50%.

	Range	Selected
Cost of equity	5.60% - 8.20%	6.90%
Tax rate	12.90% - 24.80%	18.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.4% - 6.5%	5.4%

WACC

PGDC.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.35	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	8.20%

Tax rate	12.90%	24.80%
Debt/Equity ratio	1.37	1.37
Cost of debt	4.00%	7.00%

After-tax WACC	4.4%	6.5%


Selected WACC	5.4%

PGDC.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 PGDC.V:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.