CLE.WA WACC - Weighted Average Cost of Capital
The WACC of Coal Energy SA (CLE.WA) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.5% | 9.4% |
| Tax rate | 1.5% - 2.3% | 1.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.1% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.44 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.5% |
| Tax rate | 1.5% | 2.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.1% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLE.WA | Coal Energy SA | 0.09 | 1.2 | 1.1 |
| BISI.L | Bisichi PLC | 0.75 | 0.66 | 0.38 |
| EDL.L | Edenville Energy PLC | 0.03 | -0.18 | -0.18 |
| GCM.L | GCM Resources plc | 0.82 | 0.27 | 0.15 |
| GEOS.OL | Golden Energy Offshore Services AS | 2.14 | 0.44 | 0.14 |
| NCCL.L | Ncondezi Energy Ltd | 1.86 | 1.37 | 0.48 |
| UKOG.L | UK Oil & Gas PLC | 2.2 | -1.02 | -0.32 |
| UOG.L | United Oil & Gas PLC | 0.95 | 0.47 | 0.24 |
| URU.L | URU Metals Ltd | 0.47 | 1.12 | 0.76 |
| SML.V | Southstone Minerals Ltd | 2.46 | -2.08 | -0.61 |
| Low | High | |
| Unlevered beta | 0.15 | 0.3 |
| Relevered beta | 0.16 | 0.33 |
| Adjusted relevered beta | 0.44 | 0.55 |
CLE.WA'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 CLE.WA:
cost_of_equity (9.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.44) + 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.