SDC.V WACC - Weighted Average Cost of Capital
The WACC of SolidusGold Inc (SDC.V) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.4% - 15.8% | 11.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 9.7% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.58 | 1.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 15.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 9.7% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDC.V | SolidusGold Inc | 1 | 1.48 | 0.86 |
| CBA.V | Champion Bear Resources Ltd | 0.17 | -1.92 | -1.71 |
| CMD.V | Commander Resources Ltd | 0.01 | 0.65 | 0.64 |
| GOM.V | Golden Dawn Minerals Inc | 0.32 | 1.64 | 1.33 |
| IMA.V | I Minerals Inc | 56.34 | 1.09 | 0.03 |
| LBY.V | Liberty One Lithium Corp | 0.03 | 2.05 | 2.01 |
| MAC.V | THEMAC Resources Group Ltd | 31.43 | 1.84 | 0.08 |
| MTT.V | Magna Terra Minerals Inc | 0 | 2.35 | 2.35 |
| PSE.CN | Pasinex Resources Ltd | 0.46 | -1.56 | -1.17 |
| RTH.V | Rathdowney Resources Ltd | 0.81 | 2.72 | 1.71 |
| SZM.V | ScoZinc Mining Ltd | 0 | 1.87 | 1.86 |
| Low | High | |
| Unlevered beta | 0.64 | 1.33 |
| Relevered beta | 0.37 | 1.94 |
| Adjusted relevered beta | 0.58 | 1.63 |
SDC.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 SDC.V:
cost_of_equity (11.60%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.58) + 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.