YRB.TO WACC - Weighted Average Cost of Capital
The WACC of Les Ressources Yorbeau Inc (YRB.TO) is 9.0%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.5% | 8.95% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 46.6% | 26.8% |
| WACC | 7.4% - 10.5% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.83 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.5% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 46.6% |
| After-tax WACC | 7.4% | 10.5% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YRB.TO | Les Ressources Yorbeau Inc | 0 | 0.37 | 0.37 |
| ASE.CN | Asante Gold Corp | 0.09 | 0.51 | 0.48 |
| BAT.V | Batero Gold Corp | 0.16 | 0.64 | 0.57 |
| CVB.V | Compass Gold Corp | 0.03 | -0.26 | -0.26 |
| GFG.V | GFG Resources Inc | 0 | 0.86 | 0.85 |
| GGM.V | Granada Gold Mine Inc | 0.28 | 1.26 | 1.05 |
| KTO.V | K2 Gold Corp | 0 | 1.07 | 1.07 |
| MAS.V | MAS Gold Corp | 0.03 | 1.72 | 1.68 |
| MM.CN | Metallica Metals Corp | 0 | 1.49 | 1.49 |
| RDU.V | Radius Gold Inc | 0.01 | 1.87 | 1.86 |
| Low | High | |
| Unlevered beta | 0.74 | 1.06 |
| Relevered beta | 0.75 | 1.06 |
| Adjusted relevered beta | 0.83 | 1.04 |
YRB.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 YRB.TO:
cost_of_equity (8.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.