MIN.AX
Mineral Resources Ltd
Price:  
24.44 
AUD
Volume:  
3,376,313
Australia | Metals & Mining

MIN.AX WACC - Weighted Average Cost of Capital

The WACC of Mineral Resources Ltd (MIN.AX) is 10.9%.

The Cost of Equity of Mineral Resources Ltd (MIN.AX) is 12.15%.
The Cost of Debt of Mineral Resources Ltd (MIN.AX) is 14%.

RangeSelected
Cost of equity8.9% - 15.4%12.15%
Tax rate28.9% - 29.7%29.3%
Cost of debt4.0% - 24.0%14%
WACC5.5% - 16.3%10.9%
WACC

MIN.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.951.71
Additional risk adjustments0.0%0.5%
Cost of equity8.9%15.4%
Tax rate28.9%29.7%
Debt/Equity ratio
1.281.28
Cost of debt4.0%24.0%
After-tax WACC5.5%16.3%
Selected WACC10.9%

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 (12.15%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.95) + 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.