AUE.SI WACC - Weighted Average Cost of Capital

The WACC of Golden Energy and Resources Ltd (AUE.SI) is 7.7%.

The Cost of Equity of Golden Energy and Resources Ltd (AUE.SI) is 15.20%.

The Cost of Debt of Golden Energy and Resources Ltd (AUE.SI) is 9.35%.

	Range	Selected
Cost of equity	12.30% - 18.10%	15.20%
Tax rate	35.30% - 41.00%	38.15%
Cost of debt	4.00% - 14.70%	9.35%
WACC	4.7% - 10.7%	7.7%

WACC

AUE.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.89	2.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	18.10%

Tax rate	35.30%	41.00%
Debt/Equity ratio	3.66	3.66
Cost of debt	4.00%	14.70%

After-tax WACC	4.7%	10.7%


Selected WACC	7.7%

AUE.SI'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 AUE.SI:

cost_of_equity (15.20%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.89) + 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.