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Royal Gold Inc (RGLD) — WACC Analysis

WACC Breakdown

Royal Gold Inc (RGLD) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 8.0%, derived from a beta of 0.56 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 98.1% equity and 1.9% debt.

Interpretation

A WACC of 7.8% suggests that the market views Royal Gold Inc as relatively low-risk, with a lower cost of financing.

Investors can compare RGLD's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 0.56 reflects the stock's volatility relative to the broader market.

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VALUATION

RGLD WACC: 7.85% for Royal Gold Inc

Current inputs imply a 7.97% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Royal Gold Inc Common Stock (RGLD) WACC Results
Weighted Average Cost of Capital
7.85%
Cost of Equity
7.97%
Risk-Free Rate4.98%
Beta0.56
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 98.07%($20.07B)
Debt: 1.93%($395.89M)
Equity Component
7.82%
98.07% × 7.97%
Debt Component
0.03%
1.93% × 1.58%

Royal Gold Inc (RGLD) WACC in context

Royal Gold Inc (RGLD) currently screens with an estimated WACC of 7.85%. That blends a 7.97% cost of equity, a 2.00% pre-tax cost of debt, and a 98.07% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What RGLD WACC implies

A 7.85% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RGLD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.56 and equity accounts for 98.07% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.