SVG.V WACC - Weighted Average Cost of Capital
The WACC of Silver Grail Resources Ltd (SVG.V) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.7% - 14.5% | 10.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 9.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.55 | 1.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 14.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 9.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SVG.V | Silver Grail Resources Ltd | 1.04 | 0.15 | 0.09 |
| BAY.V | Aston Bay Holdings Ltd | 0.05 | 1.17 | 1.12 |
| CBA.V | Champion Bear Resources Ltd | 0.21 | -1.25 | -1.09 |
| CCD.V | Cascadero Copper Corp | 0.07 | -0.89 | -0.85 |
| GOM.V | Golden Dawn Minerals Inc | 0.32 | 1.64 | 1.33 |
| IMA.V | I Minerals Inc | 56.34 | 1.09 | 0.03 |
| KMAX.V | OrganiMax Nutrient Corp | 0.01 | 1.05 | 1.04 |
| LBY.V | Liberty One Lithium Corp | 0.03 | 2.05 | 2.01 |
| PSE.CN | Pasinex Resources Ltd | 0.29 | -1.48 | -1.22 |
| RMD.V | Richmond Minerals Inc | 0.41 | 0.39 | 0.3 |
| VZZ.V | Val d Or Mining Corp | 0.08 | 1.21 | 1.14 |
| Low | High | |
| Unlevered beta | 0.09 | 1.04 |
| Relevered beta | 0.33 | 1.85 |
| Adjusted relevered beta | 0.55 | 1.57 |
SVG.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 SVG.V:
cost_of_equity (10.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.