ABN.V WACC - Weighted Average Cost of Capital
The WACC of Aben Resources Ltd (ABN.V) is 5.1%.
| Range | Selected | |
| Cost of equity | 3.8% - 9.0% | 6.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 6.3% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | -0.06 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.8% | 9.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 6.3% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ABN.V | Aben Resources Ltd | 1.09 | 1.83 | 1.02 |
| EOM.CN | Eco Oro Minerals Corp | 22.2 | -3.12 | -0.18 |
| LMS.V | Latin Metals Inc | 1.1 | 1.29 | 0.71 |
| OOR.V | Opus One Gold Corp | 1.16 | 2.43 | 1.32 |
| PGC.V | Plato Gold Corp | 1.15 | -0.75 | -0.41 |
| PTX.CN | Platinex Inc | 0.02 | -1.84 | -1.81 |
| RUG.V | Rugby Mining Ltd | 0.97 | 0.95 | 0.56 |
| SRGZ | Star Gold Corp | 0.16 | -4.13 | -3.69 |
| WAR.V | Warrior Gold Inc | 0 | 0.49 | 0.49 |
| XGC.V | Xali Gold Corp | 0.01 | -0.48 | -0.47 |
| Low | High | |
| Unlevered beta | -0.27 | 0.52 |
| Relevered beta | -0.58 | 0.4 |
| Adjusted relevered beta | -0.06 | 0.6 |
ABN.V'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 ABN.V:
cost_of_equity (6.40%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (-0.06) + 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.