CAZ.AX
Cazaly Resources Ltd
Price:  
0.02 
AUD
Volume:  
426,827
Australia | Metals & Mining

CAZ.AX WACC - Weighted Average Cost of Capital

The WACC of Cazaly Resources Ltd (CAZ.AX) is 10.0%.

The Cost of Equity of Cazaly Resources Ltd (CAZ.AX) is 10.1%.
The Cost of Debt of Cazaly Resources Ltd (CAZ.AX) is 5%.

RangeSelected
Cost of equity8.2% - 12.0%10.1%
Tax rate30.0% - 30.0%30%
Cost of debt5.0% - 5.0%5%
WACC8.1% - 11.9%10.0%
WACC

CAZ.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.811.15
Additional risk adjustments0.0%0.5%
Cost of equity8.2%12.0%
Tax rate30.0%30.0%
Debt/Equity ratio
0.020.02
Cost of debt5.0%5.0%
After-tax WACC8.1%11.9%
Selected WACC10.0%

CAZ.AX'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 CAZ.AX:

cost_of_equity (10.10%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.