CYM.AX
Cyprium Metals Ltd
Price:  
0.03 
AUD
Volume:  
3,096,088
Australia | Metals & Mining

CYM.AX WACC - Weighted Average Cost of Capital

The WACC of Cyprium Metals Ltd (CYM.AX) is 7.2%.

The Cost of Equity of Cyprium Metals Ltd (CYM.AX) is 9.65%.
The Cost of Debt of Cyprium Metals Ltd (CYM.AX) is 4.35%.

RangeSelected
Cost of equity7.3% - 12.0%9.65%
Tax rate1.3% - 3.3%2.3%
Cost of debt4.0% - 4.7%4.35%
WACC5.8% - 8.6%7.2%
WACC

CYM.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.641.14
Additional risk adjustments0.0%0.5%
Cost of equity7.3%12.0%
Tax rate1.3%3.3%
Debt/Equity ratio
0.810.81
Cost of debt4.0%4.7%
After-tax WACC5.8%8.6%
Selected WACC7.2%

CYM.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 CYM.AX:

cost_of_equity (9.65%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.