What is SGNL.TO's WACC?

Signal Gold Inc (SGNL.TO) WACC Analysis

As of May 27, 2025, Signal Gold Inc (SGNL.TO) carries a Weighted Average Cost of Capital (WACC) of 8.6%. WACC reflects the blended rate Signal Gold Inc must pay to both equity and debt holders.

Within that, the cost of equity is 9.9%, the cost of debt is 7.0%, 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: 1.32 – 1.33
  • Additional risk adjustment: 0.0% – 0.5%
  • Debt-to-equity ratio: 0.72

What It Means for Investors

With a selected WACC of 8.6%, Signal Gold Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.