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AMERICAN RESOURCES CORP (AREC) — WACC Analysis

WACC Breakdown

AMERICAN RESOURCES CORP (AREC) has a weighted average cost of capital (WACC) of 10.8%. The cost of equity is 10.8%, derived from a beta of 1.49 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 99.4% equity and 0.6% debt.

Interpretation

A WACC of 10.8% is moderate, reflecting the market's balanced risk assessment of AMERICAN RESOURCES CORP.

Investors can compare AREC's WACC of 10.8% against industry peers to gauge its relative financing costs. A beta of 1.49 reflects the stock's volatility relative to the broader market.

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VALUATION

AREC WACC: 10.78% for AMERICAN RESOURCES CORP

Current inputs imply a 10.83% 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 RESOURCES CORP Common Stock (AREC) WACC Results
Weighted Average Cost of Capital
10.78%
Cost of Equity
10.83%
Risk-Free Rate5.22%
Beta1.49
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.40%($160.46M)
Debt: 0.60%($0.97M)
Equity Component
10.77%
99.40% × 10.83%
Debt Component
0.01%
0.60% × 2.00%

AMERICAN RESOURCES CORP (AREC) WACC in context

AMERICAN RESOURCES CORP (AREC) currently screens with an estimated WACC of 10.78%. That blends a 10.83% cost of equity, a 2.00% pre-tax cost of debt, and a 99.40% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What AREC WACC implies

A 10.78% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates AREC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.49 and equity accounts for 99.40% 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.