TRL.AX
Tanga Resources Ltd
Price:  
0.07 
AUD
Volume:  
159,276
Australia | Metals & Mining

TRL.AX WACC - Weighted Average Cost of Capital

The WACC of Tanga Resources Ltd (TRL.AX) is 7.1%.

The Cost of Equity of Tanga Resources Ltd (TRL.AX) is 10.65%.
The Cost of Debt of Tanga Resources Ltd (TRL.AX) is 5%.

RangeSelected
Cost of equity8.8% - 12.5%10.65%
Tax rate30.0% - 30.0%30%
Cost of debt5.0% - 5.0%5%
WACC6.2% - 8.0%7.1%
WACC

TRL.AX WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium4.7%5.7%
Adjusted beta1.091.36
Additional risk adjustments0.0%0.5%
Cost of equity8.8%12.5%
Tax rate30.0%30.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.2%8.0%
Selected WACC7.1%

TRL.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 TRL.AX:

cost_of_equity (10.65%) = risk_free_rate (3.95%) + equity_risk_premium (5.20%) * adjusted_beta (1.09) + 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.