RBX.V WACC - Weighted Average Cost of Capital
The WACC of Robex Resources Inc (RBX.V) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.9% - 7.7% | 6.8% |
| Tax rate | 21.0% - 35.7% | 28.35% |
| Cost of debt | 7.5% - 9.3% | 8.4% |
| WACC | 5.9% - 7.6% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.4 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 7.7% |
| Tax rate | 21.0% | 35.7% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 7.5% | 9.3% |
| After-tax WACC | 5.9% | 7.6% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RBX.V | Robex Resources Inc | 0.06 | 0.06 | 0.06 |
| CMCL | Caledonia Mining Corporation PLC | 0.08 | 0.86 | 0.81 |
| F.V | Fiore Gold Ltd | 0.02 | 0.98 | 0.96 |
| GG.V | Galane Gold Ltd | 0.16 | 1.13 | 1.01 |
| GGA.TO | Goldgroup Mining Inc | 2.61 | -0.76 | -0.25 |
| HRT.TO | Harte Gold Corp | 5.45 | 1.02 | 0.19 |
| MGZ.H.V | Mangazeya Mining Ltd | 5.31 | -0.14 | -0.03 |
| MIRL.CN | Minera IRL Ltd | 14.91 | -0.43 | -0.03 |
| ORV.TO | Orvana Minerals Corp | 0.67 | 0.28 | 0.18 |
| XIA.V | Xiana Mining Inc | 3.03 | 0.44 | 0.13 |
| Low | High | |
| Unlevered beta | 0.1 | 0.19 |
| Relevered beta | 0.1 | 0.19 |
| Adjusted relevered beta | 0.4 | 0.46 |
RBX.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 RBX.V:
cost_of_equity (6.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.