RWR.H.V WACC - Weighted Average Cost of Capital
The WACC of Rockwealth Resources Corp (RWR.H.V) is 7.4%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.4% | 11.1% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.0% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.4 | 1.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.4% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.0% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RWR.H.V | Rockwealth Resources Corp | 0.8 | 0.78 | 0.49 |
| AVU.V | Avrupa Minerals Ltd | 0.94 | 1.88 | 1.11 |
| BDGC.V | Boundary Gold and Copper Mining Ltd | 0.04 | 1.63 | 1.58 |
| BMIN | Britannia Mining Inc | 0.01 | 0.58 | 0.58 |
| IMR.V | iMetal Resources Inc | 1.15 | -0.69 | -0.38 |
| JJJ.X.CN | 37 Capital Inc | 0.47 | 2.34 | 1.74 |
| JZR.V | Jazz Resources Inc | 0.06 | -0.92 | -0.88 |
| TRS.V | Tres-Or Resources Ltd | 0.01 | -0.7 | -0.7 |
| VR.CN | Victory Resources Corp | 0.08 | 1.92 | 1.81 |
| Low | High | |
| Unlevered beta | 0.51 | 1 |
| Relevered beta | 1.6 | 1.64 |
| Adjusted relevered beta | 1.4 | 1.43 |
RWR.H.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 RWR.H.V:
cost_of_equity (11.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.4) + 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.