Rathdowney Resources Ltd (RTH.V) WACC Analysis

As of June 18, 2025, Rathdowney Resources Ltd (RTH.V) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Rathdowney Resources Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 5.5%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.33 – 0.55
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.64

What It Means for Investors

With a selected WACC of 5.6%, Rathdowney Resources Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.