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American Battery Technology Company Common Stock (ABAT) — WACC Analysis

WACC Breakdown

American Battery Technology Company Common Stock (ABAT) has a weighted average cost of capital (WACC) of 12.3%. The cost of equity is 12.6%, derived from a beta of 2.13 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 96.6% equity and 3.4% debt.

Interpretation

A WACC of 12.3% indicates that the market perceives American Battery Technology Company Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare ABAT's WACC of 12.3% against industry peers to gauge its relative financing costs. A beta of 2.13 reflects the stock's volatility relative to the broader market.

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VALUATION

ABAT WACC: 12.28% for American Battery Technology Company Common Stock

Current inputs imply a 12.64% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

American Battery Technology Company Common Stock Common Stock (ABAT) WACC Results
Weighted Average Cost of Capital
12.28%
Cost of Equity
12.64%
Risk-Free Rate5.22%
Beta2.13
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 96.62%($280.88M)
Debt: 3.38%($9.83M)
Equity Component
12.21%
96.62% × 12.64%
Debt Component
0.07%
3.38% × 2.00%

American Battery Technology Company Common Stock (ABAT) WACC in context

American Battery Technology Company Common Stock (ABAT) currently screens with an estimated WACC of 12.28%. That blends a 12.64% cost of equity, a 2.00% pre-tax cost of debt, and a 96.62% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What ABAT WACC implies

A 12.28% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates ABAT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.13 and equity accounts for 96.62% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.