SSL.TO
Sandstorm Gold Ltd
Price:  
13.15 
CAD
Volume:  
137,485
Canada | Metals & Mining

SSL.TO WACC - Weighted Average Cost of Capital

The WACC of Sandstorm Gold Ltd (SSL.TO) is 14.0%.

The Cost of Equity of Sandstorm Gold Ltd (SSL.TO) is 9.35%.
The Cost of Debt of Sandstorm Gold Ltd (SSL.TO) is 83.2%.

RangeSelected
Cost of equity7.9% - 10.8%9.35%
Tax rate27.2% - 40.3%33.75%
Cost of debt6.3% - 160.1%83.2%
WACC7.5% - 20.5%14.0%
WACC

SSL.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.921.08
Additional risk adjustments0.0%0.5%
Cost of equity7.9%10.8%
Tax rate27.2%40.3%
Debt/Equity ratio
0.130.13
Cost of debt6.3%160.1%
After-tax WACC7.5%20.5%
Selected WACC14.0%

SSL.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 SSL.TO:

cost_of_equity (9.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.