RTG.TO WACC - Weighted Average Cost of Capital
The WACC of RTG Mining Inc (RTG.TO) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.2% | 5.45% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 6.1% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.31 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 6.1% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RTG.TO | RTG Mining Inc | 0.01 | -0.92 | -0.92 |
| CSG.H.V | Cosigo Resources Ltd | 0.02 | 1.63 | 1.6 |
| GBE.V | Lifestyle Global Brands Ltd | 1.57 | 1.04 | 0.48 |
| GDX.V | Goldex Resources Corp | 0.53 | -1.4 | -1 |
| JUB.V | Jubilee Gold Exploration Ltd | 0.04 | -0.03 | -0.03 |
| PPX.V | PPX Mining Corp | 0.21 | -0.75 | -0.65 |
| RBYC | Ruby Creek Resources Inc | 0 | 0 | 0 |
| VAX.V | Vantex Resources Ltd | 0.22 | 0.02 | 0.02 |
| Low | High | |
| Unlevered beta | -0.16 | 0 |
| Relevered beta | -0.03 | 0 |
| Adjusted relevered beta | 0.31 | 0.33 |
RTG.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 RTG.TO:
cost_of_equity (5.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.31) + 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.