GWMO.L
Great Western Mining Corporation PLC
Price:  
1.65 
GBP
Volume:  
393,568
Ireland | Metals & Mining

GWMO.L WACC - Weighted Average Cost of Capital

The WACC of Great Western Mining Corporation PLC (GWMO.L) is 6.8%.

The Cost of Equity of Great Western Mining Corporation PLC (GWMO.L) is 9.55%.
The Cost of Debt of Great Western Mining Corporation PLC (GWMO.L) is 5%.

RangeSelected
Cost of equity7.3% - 11.8%9.55%
Tax rate19.0% - 19.0%19%
Cost of debt5.0% - 5.0%5%
WACC5.7% - 7.9%6.8%
WACC

GWMO.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.550.97
Additional risk adjustments0.0%0.5%
Cost of equity7.3%11.8%
Tax rate19.0%19.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.7%7.9%
Selected WACC6.8%

GWMO.L'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 GWMO.L:

cost_of_equity (9.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.