VAST.L
Vast Resources PLC
Price:  
0.36 
GBP
Volume:  
7,119,915
United Kingdom | Metals & Mining

VAST.L WACC - Weighted Average Cost of Capital

The WACC of Vast Resources PLC (VAST.L) is 6.6%.

The Cost of Equity of Vast Resources PLC (VAST.L) is 8.2%.
The Cost of Debt of Vast Resources PLC (VAST.L) is 5%.

RangeSelected
Cost of equity6.5% - 9.9%8.2%
Tax rate19.0% - 19.0%19%
Cost of debt5.0% - 5.0%5%
WACC5.6% - 7.7%6.6%
WACC

VAST.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.410.7
Additional risk adjustments0.0%0.5%
Cost of equity6.5%9.9%
Tax rate19.0%19.0%
Debt/Equity ratio
0.590.59
Cost of debt5.0%5.0%
After-tax WACC5.6%7.7%
Selected WACC6.6%

VAST.L'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 VAST.L:

cost_of_equity (8.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.