OKU.AX WACC - Weighted Average Cost of Capital
The WACC of Oklo Resources Ltd (OKU.AX) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.2% | 8.3% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 4.8% - 6.7% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 4.8% | 6.7% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OKU.AX | Oklo Resources Ltd | 1.12 | 0.34 | 0.19 |
| AAR.AX | Anglo Australian Resources NL | 0 | 0.08 | 0.08 |
| BBX.AX | BBX Minerals Ltd | 0.13 | 0.29 | 0.27 |
| DGR.AX | DGR Global Ltd | 1.65 | 0.01 | 0 |
| GML.AX | Gateway Mining Ltd | 0.01 | 0.14 | 0.13 |
| HMX.AX | Hammer Metals Ltd | 0.01 | 1.53 | 1.52 |
| NTM.AX | NTM GOLD ORD | 0.37 | 0.93 | 0.74 |
| PDI.AX | Predictive Discovery Ltd | 0 | 1.53 | 1.53 |
| TAM.AX | Tanami Gold NL | 0 | 1 | 1 |
| TSO.AX | Tesoro Resources Ltd | 0 | -0.65 | -0.65 |
| VAN.AX | Vango Mining Ltd | 0.03 | 0.06 | 0.06 |
| Low | High | |
| Unlevered beta | 0.13 | 0.27 |
| Relevered beta | 0.19 | 0.78 |
| Adjusted relevered beta | 0.46 | 0.85 |
OKU.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 OKU.AX:
cost_of_equity (8.30%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.