AUE.SI WACC - Weighted Average Cost of Capital
The WACC of Golden Energy and Resources Ltd (AUE.SI) is 7.7%.
| Range | Selected | |
| Cost of equity | 12.5% - 18.0% | 15.25% |
| Tax rate | 35.3% - 41.0% | 38.15% |
| Cost of debt | 4.0% - 14.7% | 9.35% |
| WACC | 4.8% - 10.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.92 | 2.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.5% | 18.0% |
| Tax rate | 35.3% | 41.0% |
| Debt/Equity ratio | 3.59 | 3.59 |
| Cost of debt | 4.0% | 14.7% |
| After-tax WACC | 4.8% | 10.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AUE.SI | Golden Energy and Resources Ltd | 3.59 | -0.18 | -0.06 |
| 41H.SI | Blackgold Natural Resources Ltd | 1.45 | -0.13 | -0.07 |
| 600123.SS | Shanxi Lanhua Sci-Tech Venture Co Ltd | 0.86 | 1.2 | 0.77 |
| 600508.SS | Shanghai Datun Energy Resources Co Ltd | 0.26 | 1.31 | 1.13 |
| 600971.SS | Anhui Hengyuan Coal Industry and Electricity Power Co Ltd | 0.26 | 1.3 | 1.11 |
| 601001.SS | Jinneng Holding Shanxi Coal Industry Co Ltd | 0.19 | 0.87 | 0.78 |
| 601918.SS | China Coal Xinji Energy Co Ltd | 1.13 | 1.11 | 0.64 |
| RE4.SI | Geo Energy Resources Ltd | 0.63 | 0.59 | 0.42 |
| SMR.AX | Stanmore Coal Ltd | 0.38 | 1.59 | 1.28 |
| TER.AX | Terracom Ltd | 0.06 | 1.5 | 1.45 |
| Low | High | |
| Unlevered beta | 0.72 | 0.91 |
| Relevered beta | 2.37 | 3 |
| Adjusted relevered beta | 1.92 | 2.34 |
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 (15.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.92) + 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.