TXG.TO
Torex Gold Resources Inc
Price:  
41.19 
CAD
Volume:  
154,400.00
Canada | Metals & Mining
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TXG.TO WACC - Weighted Average Cost of Capital

The WACC of Torex Gold Resources Inc (TXG.TO) is 9.3%.

The Cost of Equity of Torex Gold Resources Inc (TXG.TO) is 9.35%.
The Cost of Debt of Torex Gold Resources Inc (TXG.TO) is 13.55%.

Range Selected
Cost of equity 8.00% - 10.70% 9.35%
Tax rate 36.30% - 39.40% 37.85%
Cost of debt 4.00% - 23.10% 13.55%
WACC 7.7% - 10.9% 9.3%
WACC

TXG.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.95 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.70%
Tax rate 36.30% 39.40%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 23.10%
After-tax WACC 7.7% 10.9%
Selected WACC 9.3%

TXG.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 TXG.TO:

cost_of_equity (9.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.95) + 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.