VTX.V WACC - Weighted Average Cost of Capital

The WACC of Vertex Resource Group Ltd (VTX.V) is 12.9%.

The Cost of Equity of Vertex Resource Group Ltd (VTX.V) is 20.30%.

The Cost of Debt of Vertex Resource Group Ltd (VTX.V) is 14.90%.

	Range	Selected
Cost of equity	13.10% - 27.50%	20.30%
Tax rate	17.60% - 23.60%	20.60%
Cost of debt	5.90% - 23.90%	14.90%
WACC	6.1% - 19.6%	12.9%

WACC

VTX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.81	3.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	27.50%

Tax rate	17.60%	23.60%
Debt/Equity ratio	5.61	5.61
Cost of debt	5.90%	23.90%

After-tax WACC	6.1%	19.6%


Selected WACC	12.9%

VTX.V'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 VTX.V:

cost_of_equity (20.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.81) + 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.