TAS.AX
Tasman Resources Ltd
Price:  
0.02 
AUD
Volume:  
22,366
Australia | Metals & Mining

TAS.AX WACC - Weighted Average Cost of Capital

The WACC of Tasman Resources Ltd (TAS.AX) is 4.4%.

The Cost of Equity of Tasman Resources Ltd (TAS.AX) is 11.35%.
The Cost of Debt of Tasman Resources Ltd (TAS.AX) is 4.6%.

RangeSelected
Cost of equity8.4% - 14.3%11.35%
Tax rate30.0% - 30.0%30%
Cost of debt4.0% - 5.2%4.6%
WACC3.6% - 5.1%4.4%
WACC

TAS.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.861.53
Additional risk adjustments0.0%0.5%
Cost of equity8.4%14.3%
Tax rate30.0%30.0%
Debt/Equity ratio
6.256.25
Cost of debt4.0%5.2%
After-tax WACC3.6%5.1%
Selected WACC4.4%

TAS.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 TAS.AX:

cost_of_equity (11.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.