VAST.L WACC - Weighted Average Cost of Capital
The WACC of Vast Resources PLC (VAST.L) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.9% | 8.2% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 7.7% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.41 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.9% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 7.7% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VAST.L | Vast Resources PLC | 0.59 | -0.69 | -0.47 |
| BRD.L | Bluerock Diamonds PLC | 2.75 | 0.26 | 0.08 |
| EMH.L | European Metals Holdings Ltd | 0 | -0.43 | -0.43 |
| GEMD.L | Gem Diamonds Ltd | 2.06 | 1.22 | 0.46 |
| KDR.L | Karelian Diamond Resources PLC | 0.09 | 1.39 | 1.3 |
| NIO.ST | Nordic Iron Ore AB | 0.01 | 0.08 | 0.08 |
| PXC.L | Phoenix Copper Ltd | 0.14 | -0.29 | -0.26 |
| SLP.L | Sylvania Platinum Ltd | 0 | 1.17 | 1.17 |
| SRES.L | Sunrise Resources Plc | 0.26 | 0.56 | 0.47 |
| TRR.L | Trident Royalties PLC | 0.15 | 0.35 | 0.31 |
| Low | High | |
| Unlevered beta | 0.08 | 0.37 |
| Relevered beta | 0.12 | 0.55 |
| Adjusted relevered beta | 0.41 | 0.7 |
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.