CAML.L
Central Asia Metals PLC
Price:  
153.60 
GBP
Volume:  
332,667.00
United Kingdom | Metals & Mining
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CAML.L WACC - Weighted Average Cost of Capital

The WACC of Central Asia Metals PLC (CAML.L) is 12.0%.

The Cost of Equity of Central Asia Metals PLC (CAML.L) is 12.05%.
The Cost of Debt of Central Asia Metals PLC (CAML.L) is 4.30%.

Range Selected
Cost of equity 10.30% - 13.80% 12.05%
Tax rate 31.00% - 35.30% 33.15%
Cost of debt 4.00% - 4.60% 4.30%
WACC 10.2% - 13.7% 12.0%
WACC

CAML.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.05 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.80%
Tax rate 31.00% 35.30%
Debt/Equity ratio 0 0
Cost of debt 4.00% 4.60%
After-tax WACC 10.2% 13.7%
Selected WACC 12.0%

CAML.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 CAML.L:

cost_of_equity (12.05%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.05) + 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.