The WACC of Voyageur Mineral Explorers Corp (VOY.CN) is 6.9%.
Range | Selected | |
Cost of equity | 8.0% - 12.3% | 10.15% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.9% - 8.0% | 6.9% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.96 | 1.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.0% | 12.3% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.9% | 8.0% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VOY.CN | Voyageur Mineral Explorers Corp | 0.91 | 0.55 | 0.33 |
AAN.V | Aton Resources Inc | 0.46 | -0.18 | -0.14 |
CDU.V | Cardero Resource Corp | 0.09 | 1.89 | 1.78 |
CML.V | CaNickel Mining Ltd | 108.73 | -0.7 | -0.01 |
EGM.V | EnGold Mines Ltd | 0.89 | -1.21 | -0.73 |
FEX.V | Fjordland Exploration Inc | 0.03 | 0.8 | 0.78 |
JOR.V | Ressources Jourdan Inc | 0.01 | 0.19 | 0.18 |
MWX.V | Mineworx Technologies Ltd | 0.08 | 0.83 | 0.78 |
SZM.V | ScoZinc Mining Ltd | 0 | 1.87 | 1.86 |
TRO.V | Taranis Resources Inc | 0.01 | 0.99 | 0.99 |
XMG.CN | MGX Minerals Inc | 0.52 | 1.46 | 1.05 |
Low | High | |
Unlevered beta | 0.33 | 0.78 |
Relevered beta | 0.94 | 1.49 |
Adjusted relevered beta | 0.96 | 1.33 |
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 VOY.CN:
cost_of_equity (10.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.96) + 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.