KDNC.L WACC - Weighted Average Cost of Capital
The WACC of Cadence Minerals PLC (KDNC.L) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.23 | 0.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KDNC.L | Cadence Minerals PLC | 0.23 | 0.87 | 0.73 |
| ARCT.ST | Arctic Minerals AB | 0.86 | -1.26 | -0.75 |
| AYM.L | Anglesey Mining PLC | 0.95 | 0.26 | 0.15 |
| BEM.L | Beowulf Mining PLC | 0.38 | 1.44 | 1.1 |
| EMH.L | European Metals Holdings Ltd | 0 | -0.32 | -0.32 |
| HZM.L | Horizonte Minerals PLC | 176.22 | 1.19 | 0.01 |
| PRE.L | Pensana PLC | 0.1 | 0.01 | 0.01 |
| PREM.L | Premier African Minerals Ltd | 0.11 | 1.98 | 1.81 |
| TGR.L | Tirupati Graphite PLC | 0.35 | -1.24 | -0.97 |
| ZNWD.L | Zinnwald Lithium PLC | 0.01 | -1.88 | -1.86 |
| Low | High | |
| Unlevered beta | -0.12 | 0.06 |
| Relevered beta | -0.15 | 0.07 |
| Adjusted relevered beta | 0.23 | 0.38 |
KDNC.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 KDNC.L:
cost_of_equity (6.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.23) + 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.