BEM.L
Beowulf Mining PLC
Price:  
10.50 
GBP
Volume:  
20,657.00
United Kingdom | Metals & Mining
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BEM.L WACC - Weighted Average Cost of Capital

The WACC of Beowulf Mining PLC (BEM.L) is 9.4%.

The Cost of Equity of Beowulf Mining PLC (BEM.L) is 11.10%.
The Cost of Debt of Beowulf Mining PLC (BEM.L) is 5.00%.

Range Selected
Cost of equity 9.60% - 12.60% 11.10%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.3% - 10.6% 9.4%
WACC

BEM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.93 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 12.60%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.31 0.31
Cost of debt 5.00% 5.00%
After-tax WACC 8.3% 10.6%
Selected WACC 9.4%

BEM.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 BEM.L:

cost_of_equity (11.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.93) + 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.