ADMG
Adamant DRI Processing and Minerals Group
Price:  
0.11 
USD
Volume:  
6,770
China | Finance and Insurance

ADMG WACC - Weighted Average Cost of Capital

The WACC of Adamant DRI Processing and Minerals Group (ADMG) is 6.6%.

The Cost of Equity of Adamant DRI Processing and Minerals Group (ADMG) is 6.6%.
The Cost of Debt of Adamant DRI Processing and Minerals Group (ADMG) is 5%.

RangeSelected
Cost of equity5.5% - 7.7%6.6%
Tax rate0.0% - 0.1%0.05%
Cost of debt5.0% - 5.0%5%
WACC5.5% - 7.7%6.6%
WACC

ADMG WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.350.51
Additional risk adjustments0.0%0.5%
Cost of equity5.5%7.7%
Tax rate0.0%0.1%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC5.5%7.7%
Selected WACC6.6%

ADMG'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 ADMG:

cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.