RBR.AX
RBR Group Ltd
Price:  
0.00 
AUD
Volume:  
5,000,000.00
Australia | Metals & Mining
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RBR.AX WACC - Weighted Average Cost of Capital

The WACC of RBR Group Ltd (RBR.AX) is 7.4%.

The Cost of Equity of RBR Group Ltd (RBR.AX) is 10.00%.
The Cost of Debt of RBR Group Ltd (RBR.AX) is 4.45%.

Range Selected
Cost of equity 8.30% - 11.70% 10.00%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.2% - 8.6% 7.4%
WACC

RBR.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.85 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.70%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.61 0.61
Cost of debt 4.00% 4.90%
After-tax WACC 6.2% 8.6%
Selected WACC 7.4%

RBR.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 RBR.AX:

cost_of_equity (10.00%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.