ROS.V WACC - Weighted Average Cost of Capital
The WACC of Roscan Gold Corp (ROS.V) is 10.8%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.7% | 11.25% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.4% - 12.1% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.16 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.4% | 12.1% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ROS.V | Roscan Gold Corp | 0.07 | 1.18 | 1.13 |
| MAU.V | Montage Gold Corp | 0 | 1.34 | 1.34 |
| OIII.V | O3 Mining Inc | 0.04 | -0.38 | -0.37 |
| ORG.V | Orca Gold Inc | 0 | 0.53 | 0.53 |
| OSI.V | Osino Resources Corp | 0.06 | 0.76 | 0.73 |
| PRB.V | Probe Metals Inc | 0 | 1.39 | 1.38 |
| RIO.V | Rio2 Ltd | 0 | 1.86 | 1.86 |
| THX.V | Thor Explorations Ltd | 0.08 | 1.29 | 1.22 |
| TLG.TO | Troilus Gold Corp | 0 | 1.82 | 1.81 |
| TML.TO | Treasury Metals Inc | 0.3 | 1.78 | 1.46 |
| Low | High | |
| Unlevered beta | 1.18 | 1.36 |
| Relevered beta | 1.24 | 1.42 |
| Adjusted relevered beta | 1.16 | 1.28 |
ROS.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 ROS.V:
cost_of_equity (11.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.