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5E Advanced Materials, Inc. Common Stock (FEAM) — WACC Analysis

WACC Breakdown

5E Advanced Materials, Inc. Common Stock (FEAM) has a weighted average cost of capital (WACC) of 9.3%. The cost of equity is 9.3%, derived from a beta of 1.13 and a risk-free rate of 4.7%. The after-tax cost of debt is 48.5%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 9.3% is moderate, reflecting the market's balanced risk assessment of 5E Advanced Materials, Inc. Common Stock.

Investors can compare FEAM's WACC of 9.3% against industry peers to gauge its relative financing costs. A beta of 1.13 reflects the stock's volatility relative to the broader market.

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VALUATION

FEAM WACC: 9.29% for 5E Advanced Materials, Inc. Common Stock

Current inputs imply a 9.27% cost of equity and a 48.48% 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

5E Advanced Materials, Inc. Common Stock Common Stock (FEAM) WACC Results
Weighted Average Cost of Capital
9.29%
Cost of Equity
9.27%
Risk-Free Rate4.67%
Beta1.13
Market Risk Premium4.23%
Cost of Debt
48.48%
Pre-Tax Cost of Debt48.48%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.95%($67.67M)
Debt: 0.05%($0.03M)
Equity Component
9.26%
99.95% × 9.27%
Debt Component
0.02%
0.05% × 48.48%

5E Advanced Materials, Inc. Common Stock (FEAM) WACC in context

5E Advanced Materials, Inc. Common Stock (FEAM) currently screens with an estimated WACC of 9.29%. That blends a 9.27% cost of equity, a 48.48% pre-tax cost of debt, and a 99.95% 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 FEAM WACC implies

A 9.29% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FEAM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.13 and equity accounts for 99.95% 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.