QRC.V WACC - Weighted Average Cost of Capital
The WACC of Queen's Road Capital Investment Ltd (QRC.V) is 7.6%.
| Range | Selected | |
| Cost of equity | 9.5% - 13.5% | 11.5% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 8.6% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.33 | 1.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 13.5% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 8.6% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QRC.V | Queen's Road Capital Investment Ltd | 0.07 | 2.38 | 2.26 |
| CASA.V | Casa Minerals Inc | 1.19 | 0.09 | 0.05 |
| EMX.V | EMX Royalty Corp | 0.08 | 1.02 | 0.97 |
| FIL.V | Filo Mining Corp | 0 | 1.94 | 1.94 |
| GLO.TO | Global Atomic Corp | 0.03 | 2.02 | 1.98 |
| GSTX | Graphene & Solar Technologies Ltd | 2.06 | 20.33 | 8.13 |
| MAI.V | Minera Alamos Inc | 0.03 | 0.73 | 0.71 |
| NEXT.TO | NextSource Materials Inc | 0.64 | 0.25 | 0.17 |
| RZZ.V | Abitibi Royalties Inc | 0 | 0.77 | 0.77 |
| SFR.V | Sandfire Resources America Inc | 0.15 | 1.27 | 1.14 |
| TINO | Tamino Minerals Inc | 922.03 | -0.34 | 0 |
| Low | High | |
| Unlevered beta | 0.77 | 1.14 |
| Relevered beta | 1.49 | 1.93 |
| Adjusted relevered beta | 1.33 | 1.62 |
QRC.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 QRC.V:
cost_of_equity (11.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.33) + 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.