Barrick Gold Corp (ABX.TO) WACC Analysis

As of May 24, 2025, Barrick Gold Corp (ABX.TO) carries a Weighted Average Cost of Capital (WACC) of 9.5%. WACC reflects the blended rate Barrick Gold Corp must pay to both equity and debt holders.

Within that, the cost of equity is 9.2%, the cost of debt is 4.0%, and the effective tax rate is 30.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.19 – 1.26
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.17

What It Means for Investors

With a selected WACC of 9.5%, Barrick Gold Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.