DEV.AX
DevEx Resources Ltd
Price:  
0.08 
AUD
Volume:  
113,326.00
Australia | Oil, Gas & Consumable Fuels
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DEV.AX WACC - Weighted Average Cost of Capital

The WACC of DevEx Resources Ltd (DEV.AX) is 10.2%.

The Cost of Equity of DevEx Resources Ltd (DEV.AX) is 10.30%.
The Cost of Debt of DevEx Resources Ltd (DEV.AX) is 5.00%.

Range Selected
Cost of equity 8.20% - 12.40% 10.30%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 12.3% 10.2%
WACC

DEV.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.82 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 12.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 12.3%
Selected WACC 10.2%

DEV.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 DEV.AX:

cost_of_equity (10.30%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + 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.