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    • KOR.AX
    Korab Resources Ltd
    Price:  
    0.01 
    AUD
    Volume:  
    14,127
    Australia | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC

    KOR.AX WACC - Weighted Average Cost of Capital

    The WACC of Korab Resources Ltd (KOR.AX) is 6.9%.

    The Cost of Equity of Korab Resources Ltd (KOR.AX) is 11.35%.
    The Cost of Debt of Korab Resources Ltd (KOR.AX) is 5.5%.

    RangeSelected
    Cost of equity9.8% - 12.9%11.35%
    Tax rate30.0% - 30.0%30%
    Cost of debt4.0% - 7.0%5.5%
    WACC5.7% - 8.2%6.9%
    WACC

    KOR.AX WACC calculation

    CategoryLowHigh
    Long-term bond rate4.0%4.5%
    Equity market risk premium5.1%6.1%
    Adjusted beta1.141.3
    Additional risk adjustments0.0%0.5%
    Cost of equity9.8%12.9%
    Tax rate30.0%30.0%
    Debt/Equity ratio
    		1.461.46
    Cost of debt4.0%7.0%
    After-tax WACC5.7%8.2%
    Selected WACC6.9%

    KOR.AX WACC - Detailed calculations of Beta

    Debt/EquityUnlevered
    PeersCompany NameratioBetabeta
    KOR.AXKorab Resources Ltd1.461.410.7
    AOA.AX Ausmon Resources Ltd 0.16 1.01 0.91
    KFM.AX Kingfisher Mining Ltd 0.02 0.55 0.54
    MQR.AX Marquee Resources Ltd 0.01 0.06 0.06
    MTB.AX Mount Burgess Mining NL 0.92 1.48 0.9
    TRM.AX Truscott Mining Corp Ltd 0.05 0.81 0.79
    WML.AX Woomera Mining Ltd 0.02 0.62 0.61
    XTC.AX Xantippe Resources Ltd 0.02 -0.15 -0.14
    LowHigh
    Unlevered beta0.60.72
    Relevered beta1.211.45
    Adjusted relevered beta1.141.3

    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 (11.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.