VIA.AX
Viagold Rare Earth Resources Holdings Ltd
Price:  
2.00 
AUD
Volume:  
52,236.00
Australia | Metals & Mining
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VIA.AX WACC - Weighted Average Cost of Capital

The WACC of Viagold Rare Earth Resources Holdings Ltd (VIA.AX) is 7.8%.

The Cost of Equity of Viagold Rare Earth Resources Holdings Ltd (VIA.AX) is 11.55%.
The Cost of Debt of Viagold Rare Earth Resources Holdings Ltd (VIA.AX) is 5.00%.

Range Selected
Cost of equity 9.70% - 13.40% 11.55%
Tax rate 18.30% - 22.10% 20.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 8.7% 7.8%
WACC

VIA.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.12 1.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.40%
Tax rate 18.30% 22.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 8.7%
Selected WACC 7.8%

VIA.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 VIA.AX:

cost_of_equity (11.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.12) + 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.