Challenger GoldCLLEF +3.32%39 WACC % is 12.05% as of Jun. 24, 2026, which is 70% above its 10-year median of 7.08. GuruFocus rates CLLEF with a GF Score™ of 39/100. The stock has 1 warning sign investors should review. Among 2,670 Metals & Mining companies, Challenger Gold ranks better than 61.12% on this metric.
As of today (2026-06-24), Challenger Gold's weighted average cost of capital is 12.05%%. Challenger Gold's ROIC % is -2.38% (calculated using TTM income statement data).
Challenger Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Challenger Gold (OTCPK:CLLEF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Challenger Gold's weighted average cost of capital is 12.05%%. Challenger Gold's ROIC % is -2.38% (calculated using TTM income statement data).
Challenger Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Challenger Gold WACC % Historical Data
* Premium members only.
The historical data trend for Challenger Gold's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Other Precious Metals & Mining subindustry, Challenger Gold's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Challenger Gold WACC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Challenger Gold's WACC % distribution charts can be found below:
* The bar in red indicates where Challenger Gold's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Challenger Gold's market capitalization (E) is $196.158 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Challenger Gold's latest one-year semi-annual average Book Value of Debt (D) is $13.259 Mil.
a) weight of equity = E / (E + D) = 196.158 / (196.158 + 13.259) = 0.9367
b) weight of debt = D / (E + D) = 13.259 / (196.158 + 13.259) = 0.0633
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Challenger Gold's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + 1 * 6% = 10.99%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Challenger Gold's interest expense (positive number) was $3.686 Mil. Its total Book Value of Debt (D) is $13.259 Mil.
Cost of Debt = 3.686 / 13.259 = 27.8%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = -0.548 / 3.189 = -17.18%, which is less than 0%. Therefore it's set to 0%.
Challenger Gold's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9367
*
10.99%
+
0.0633
*
27.8%
*
(1 - 0%)
=
12.05%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Challenger Gold (CLLEF) has a WACC % of 12.05% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Challenger Gold and its competitors. This is 70% above median its historical median of 7.08. According to the industry distribution chart, Challenger Gold ranks #1038 out of 2670 companies in the Metals & Mining industry, placing it in the top 38.9%.
Is Challenger Gold's WACC % too high?
Challenger Gold's current WACC % of 12.05% is 70% above median its 10-year median of 7.08. The Metals & Mining industry median WACC % is 9.59. Challenger Gold's value of 12.05% is 25.7% above this industry median. Based on the distribution chart, Challenger Gold ranks #1038 out of 2670 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Challenger Gold has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Challenger Gold's WACC % compare to HL?
According to the Metals & Mining industry distribution chart, Challenger Gold ranks #1038 out of 2670 companies for WACC %. This puts Challenger Gold in the upper half of its industry. The industry median WACC % is 9.59. Challenger Gold's value of 12.05% is 25.7% above this benchmark. While the company's 10-year median is 7.08 vs. the industry median of 9.59, Challenger Gold has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Metals & Mining company?
The median WACC % among Metals & Mining companies is 9.59, based on 2,670 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger Gold's current WACC % of 12.05% is 25.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Challenger Gold and its competitors. For the Metals & Mining industry, the median WACC % is 9.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger Gold's current WACC % is 12.05%, which is 70% above median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger Gold stock overvalued right now?
Challenger Gold (CLLEF) has a current WACC % of 12.05%. The current WACC % is 12.05%, which is 70% above median its 10-year median of 7.08 and 25.7% above the Metals & Mining industry median of 9.59. Challenger Gold's overall GF Score™ is 39/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Challenger Gold (CLLEF), the current WACC % is 12.05% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Challenger Gold Ltd is engaged in the exploration and evaluation of gold and copper. It has operations in Australia, Ecuador, and Argentina. It derives a majority of its revenue from its operations in Australia. The company's projects are; Hualilan Gold, El Guaybo, El Guayabo Copper-Gold Tenement, Colorado V Copper-Gold Tenement, El Guayabo 2, and Cerro Pelado 1, 2, and 3 Tenements, and South African Project.
39GF Score
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