CRS.AX WACC - Weighted Average Cost of Capital
The WACC of Caprice Resources Ltd (CRS.AX) is 7.0%.
| Range | Selected | |
| Cost of equity | 8.3% - 13.1% | 10.7% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 5.8% - 8.1% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.85 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 13.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 5.8% | 8.1% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRS.AX | Caprice Resources Ltd | 0.84 | 4.41 | 2.77 |
| ACP.AX | Audalia Resources Ltd | 0.35 | -0.88 | -0.7 |
| BAR.AX | Barra Resources Ltd | 0 | 1.25 | 1.25 |
| CLZ.AX | Classic Minerals Ltd | 0.35 | 0.57 | 0.46 |
| ENT.AX | Enterprise Metals Ltd | 0.01 | 0.04 | 0.04 |
| RMX.AX | Red Mountain Mining Ltd | 0.03 | 0.45 | 0.44 |
| SRZ.AX | Stellar Resources Ltd | 0 | 1.53 | 1.53 |
| TLM.AX | Talisman Mining Ltd | 0 | 1.19 | 1.19 |
| VR8.AX | Vanadium Resources Ltd | 0.02 | 0.8 | 0.79 |
| Low | High | |
| Unlevered beta | 0.52 | 1.11 |
| Relevered beta | 0.78 | 1.48 |
| Adjusted relevered beta | 0.85 | 1.32 |
CRS.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 CRS.AX:
cost_of_equity (10.70%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.