ROXG.TO WACC - Weighted Average Cost of Capital
The WACC of Roxgold Inc (ROXG.TO) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.6% | 9.15% |
| Tax rate | 28.1% - 34.4% | 31.25% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 7.3% - 10.0% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.91 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.6% |
| Tax rate | 28.1% | 34.4% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 7.3% | 10.0% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ROXG.TO | Roxgold Inc | 0.09 | 0.88 | 0.83 |
| AR.TO | Argonaut Gold Inc | 0.69 | 1.64 | 1.12 |
| GCM.TO | Gran Colombia Gold Corp | 1.03 | 1.33 | 0.78 |
| GPR.TO | Great Panther Mining Ltd | 1.52 | 1.95 | 0.95 |
| GSC.TO | Golden Star Resources Ltd | 0.24 | 0.33 | 0.28 |
| JAG.TO | Jaguar Mining Inc | 0.04 | 2.78 | 2.71 |
| MND.TO | Mandalay Resources Corp | 0.02 | 1.44 | 1.42 |
| MUX | McEwen Mining Inc | 0.11 | 1.24 | 1.16 |
| ORA.TO | Aura Minerals Inc | 0.34 | 1.11 | 0.9 |
| WDO.TO | Wesdome Gold Mines Ltd | 0 | 1.53 | 1.53 |
| Low | High | |
| Unlevered beta | 0.93 | 1.13 |
| Relevered beta | 0.87 | 1.13 |
| Adjusted relevered beta | 0.91 | 1.09 |
ROXG.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 ROXG.TO:
cost_of_equity (9.15%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.91) + 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.