ALTN.L
Altyngold PLC
Price:  
384 
GBP
Volume:  
15,017
United Kingdom | Metals & Mining

ALTN.L WACC - Weighted Average Cost of Capital

The WACC of Altyngold PLC (ALTN.L) is 7.5%.

The Cost of Equity of Altyngold PLC (ALTN.L) is 7.15%.
The Cost of Debt of Altyngold PLC (ALTN.L) is 8.9%.

RangeSelected
Cost of equity6.0% - 8.3%7.15%
Tax rate3.3% - 7.5%5.4%
Cost of debt4.7% - 13.1%8.9%
WACC5.6% - 9.4%7.5%
WACC

ALTN.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.340.48
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.3%
Tax rate3.3%7.5%
Debt/Equity ratio
0.420.42
Cost of debt4.7%13.1%
After-tax WACC5.6%9.4%
Selected WACC7.5%

ALTN.L'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 ALTN.L:

cost_of_equity (7.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.