TOC.CN WACC - Weighted Average Cost of Capital
The WACC of Tocvan Ventures Corp (TOC.CN) is 6.0%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.2% | 6.05% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 7.1% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.2% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 7.1% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TOC.CN | Tocvan Ventures Corp | 0.02 | -0.05 | -0.05 |
| AOC.CN | Advantagewon Oil Corp | 0.08 | 1.87 | 1.76 |
| BJB.CN | Bond Resources Inc | 1.6 | -0.08 | -0.04 |
| HWY.V | Highway 50 Gold Corp | 0.07 | 0.11 | 0.11 |
| ITKO.CN | Idaho Champion Gold Mines Canada Inc | 0 | 0.04 | 0.04 |
| KTR.V | Kintavar Exploration Inc | 0.47 | 1.39 | 1.03 |
| LEXI.V | Lithium Energi Exploration Inc | 1.82 | 1.05 | 0.45 |
| OTS.H.V | Optimus Gold Corp | 0.09 | -0.59 | -0.55 |
| PSGR | Pershing Resources Company Inc | 0.02 | -0.7 | -0.69 |
| SGO.V | Sonoro Gold Corp | 0.15 | 1.97 | 1.78 |
| Low | High | |
| Unlevered beta | 0.01 | 0.24 |
| Relevered beta | 0.01 | 0.25 |
| Adjusted relevered beta | 0.34 | 0.5 |
TOC.CN'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 TOC.CN:
cost_of_equity (6.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.