CII.AX
CI Resources Ltd
Price:  
1.29 
AUD
Volume:  
20,150
Australia | Metals & Mining

CII.AX WACC - Weighted Average Cost of Capital

The WACC of CI Resources Ltd (CII.AX) is 6.6%.

The Cost of Equity of CI Resources Ltd (CII.AX) is 8.65%.
The Cost of Debt of CI Resources Ltd (CII.AX) is 5.5%.

RangeSelected
Cost of equity6.1% - 11.2%8.65%
Tax rate26.4% - 30.6%28.5%
Cost of debt4.0% - 7.0%5.5%
WACC4.7% - 8.5%6.6%
WACC

CII.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.1%4.6%
Equity market risk premium5.5%6.5%
Adjusted beta0.360.93
Additional risk adjustments0.0%0.5%
Cost of equity6.1%11.2%
Tax rate26.4%30.6%
Debt/Equity ratio
0.760.76
Cost of debt4.0%7.0%
After-tax WACC4.7%8.5%
Selected WACC6.6%

CII.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 CII.AX:

cost_of_equity (8.65%) = risk_free_rate (4.35%) + equity_risk_premium (6.00%) * adjusted_beta (0.36) + 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.