ARCT.ST WACC - Weighted Average Cost of Capital
The WACC of Arctic Minerals AB (ARCT.ST) is 6.7%.
| Range | Selected | |
| Cost of equity | 4.7% - 8.9% | 6.8% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 8.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.42 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 8.9% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 8.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARCT.ST | Arctic Minerals AB | 0.86 | -1.26 | -0.75 |
| AYM.L | Anglesey Mining PLC | 0.95 | 0.26 | 0.15 |
| BOL.ST | Boliden AB | 0.19 | 1.35 | 1.17 |
| CRCL.L | Corcel PLC | 0.12 | 1.14 | 1.04 |
| EEE.L | Empire Metals Ltd | 0 | 0.8 | 0.8 |
| EMH.L | European Metals Holdings Ltd | 0 | -0.32 | -0.32 |
| MNRG.L | Metalnrg PLC | 0.18 | 1.62 | 1.42 |
| NOM.OL | Nordic Mining ASA | 0.42 | 1.05 | 0.79 |
| THR.L | Thor Mining PLC | 0.01 | -0.5 | -0.5 |
| WRES.L | W Resources PLC | 17.51 | 1.72 | 0.12 |
| Low | High | |
| Unlevered beta | 0.14 | 0.79 |
| Relevered beta | 0.13 | 0.82 |
| Adjusted relevered beta | 0.42 | 0.88 |
ARCT.ST'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 ARCT.ST:
cost_of_equity (6.80%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.