KOR.AX WACC - Weighted Average Cost of Capital
The WACC of Korab Resources Ltd (KOR.AX) is 6.6%.
| Range | Selected | |
| Cost of equity | 9.2% - 11.9% | 10.55% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.4% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.01 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 11.9% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1.46 | 1.46 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.4% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KOR.AX | Korab Resources Ltd | 1.46 | 1.41 | 0.7 |
| AOA.AX | Ausmon Resources Ltd | 0.17 | 1.27 | 1.13 |
| KFM.AX | Kingfisher Mining Ltd | 0.02 | 0.31 | 0.31 |
| MQR.AX | Marquee Resources Ltd | 0.01 | 0.21 | 0.21 |
| MTB.AX | Mount Burgess Mining NL | 1.53 | 1.08 | 0.52 |
| RMI.AX | Resource Mining Corporation Ltd | 0.03 | 1.63 | 1.59 |
| TRM.AX | Truscott Mining Corp Ltd | 0.04 | 0.51 | 0.5 |
| WML.AX | Woomera Mining Ltd | 0.02 | 0.62 | 0.61 |
| XTC.AX | Xantippe Resources Ltd | 0.02 | -0.15 | -0.14 |
| Low | High | |
| Unlevered beta | 0.5 | 0.59 |
| Relevered beta | 1.01 | 1.19 |
| Adjusted relevered beta | 1.01 | 1.13 |
KOR.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 KOR.AX:
cost_of_equity (10.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.01) + 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.