SYA.AX WACC - Weighted Average Cost of Capital
The WACC of Sayona Mining Ltd (SYA.AX) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.3% | 8.7% |
| Tax rate | 1.9% - 3.5% | 2.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.7% - 9.8% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.6 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.3% |
| Tax rate | 1.9% | 3.5% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.7% | 9.8% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYA.AX | Sayona Mining Ltd | 0.15 | 1.1 | 0.96 |
| G1A.AX | Galena Mining Ltd | 4.81 | -0.57 | -0.1 |
| GLN.AX | Galan Lithium Ltd | 0 | -0.71 | -0.7 |
| MGV.AX | Musgrave Minerals Ltd | 0 | 0.14 | 0.14 |
| PEK.AX | Peak Resources Ltd | 0 | 2.02 | 2.02 |
| POS.AX | Poseidon Nickel Ltd | 0.01 | 1.95 | 1.93 |
| SVY.AX | Stavely Minerals Ltd | 0.04 | 0.85 | 0.83 |
| TGN.AX | Tungsten Mining NL | 0.01 | 0.3 | 0.3 |
| VML.AX | Vital Metals Ltd | 0.08 | 0.43 | 0.4 |
| VRX.AX | VRX Silica Ltd | 0.01 | 0.61 | 0.6 |
| Low | High | |
| Unlevered beta | 0.36 | 0.69 |
| Relevered beta | 0.4 | 0.79 |
| Adjusted relevered beta | 0.6 | 0.86 |
SYA.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 SYA.AX:
cost_of_equity (8.70%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.