VGCX.TO WACC - Weighted Average Cost of Capital

The WACC of Victoria Gold Corp (VGCX.TO) is 7.5%.

The Cost of Equity of Victoria Gold Corp (VGCX.TO) is 34.30%.

The Cost of Debt of Victoria Gold Corp (VGCX.TO) is 5.75%.

	Range	Selected
Cost of equity	27.50% - 41.10%	34.30%
Tax rate	30.10% - 35.70%	32.90%
Cost of debt	5.20% - 6.30%	5.75%
WACC	6.5% - 8.5%	7.5%

WACC

VGCX.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	4.78	6.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.50%	41.10%

Tax rate	30.10%	35.70%
Debt/Equity ratio	7.37	7.37
Cost of debt	5.20%	6.30%

After-tax WACC	6.5%	8.5%


Selected WACC	7.5%

VGCX.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 VGCX.TO:

cost_of_equity (34.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (4.78) + 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.