MIN.AX WACC - Weighted Average Cost of Capital
The WACC of Mineral Resources Ltd (MIN.AX) is 10.9%.
| Range | Selected | |
| Cost of equity | 9.3% - 15.3% | 12.3% |
| Tax rate | 28.9% - 29.7% | 29.3% |
| Cost of debt | 4.0% - 24.0% | 14% |
| WACC | 5.7% - 16.2% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.04 | 1.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 15.3% |
| Tax rate | 28.9% | 29.7% |
| Debt/Equity ratio | 1.29 | 1.29 |
| Cost of debt | 4.0% | 24.0% |
| After-tax WACC | 5.7% | 16.2% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIN.AX | Mineral Resources Ltd | 1.29 | 2.78 | 1.45 |
| IGO.AX | IGO Ltd | 0.02 | 1.73 | 1.71 |
| ILU.AX | Iluka Resources Ltd | 0.17 | 1.58 | 1.41 |
| MAH.AX | Macmahon Holdings Ltd | 0.56 | 1.15 | 0.82 |
| MLX.AX | Metals X Ltd | 0.01 | 0.21 | 0.21 |
| MRC.AX | Mineral Commodities Ltd | 0.42 | 0.21 | 0.16 |
| NIC.AX | Nickel Mines Ltd | 0.6 | 2.06 | 1.45 |
| PAN.AX | Panoramic Resources Ltd | 0.87 | -0.21 | -0.13 |
| PLS.AX | Pilbara Minerals Ltd | 0.12 | 1.74 | 1.6 |
| PRN.AX | Perenti Global Ltd | 0.7 | 0.97 | 0.65 |
| SYR.AX | Syrah Resources Ltd | 1.28 | 0.79 | 0.41 |
| Low | High | |
| Unlevered beta | 0.65 | 1.41 |
| Relevered beta | 1.06 | 2.03 |
| Adjusted relevered beta | 1.04 | 1.69 |
MIN.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 MIN.AX:
cost_of_equity (12.30%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.04) + 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.