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    • PNN.AX
    Pepinnini Minerals Ltd
    Price:  
    0.06 
    AUD
    Volume:  
    1,173,155
    Australia | Metals & Mining
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC

    PNN.AX WACC - Weighted Average Cost of Capital

    The WACC of Pepinnini Minerals Ltd (PNN.AX) is 9.6%.

    The Cost of Equity of Pepinnini Minerals Ltd (PNN.AX) is 10.35%.
    The Cost of Debt of Pepinnini Minerals Ltd (PNN.AX) is 5%.

    RangeSelected
    Cost of equity8.4% - 12.3%10.35%
    Tax rate2.6% - 4.2%3.4%
    Cost of debt5.0% - 5.0%5%
    WACC7.9% - 11.2%9.6%
    WACC

    PNN.AX WACC calculation

    CategoryLowHigh
    Long-term bond rate4.0%4.5%
    Equity market risk premium5.1%6.1%
    Adjusted beta0.871.19
    Additional risk adjustments0.0%0.5%
    Cost of equity8.4%12.3%
    Tax rate2.6%4.2%
    Debt/Equity ratio
    		0.160.16
    Cost of debt5.0%5.0%
    After-tax WACC7.9%11.2%
    Selected WACC9.6%

    PNN.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 PNN.AX:

    cost_of_equity (10.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.87) + 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.