Power Metal Resources (LSE:POW) Effective Interest Rate on Debt %: 23.00% (As of Dec. 2025)


LSE:POW Power Metal Resources PLC LSE:POW
37 GF Score
Price £0.12
GF Value £0.04
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Power Metal Resources Effective Interest Rate on Debt %?

Power Metal Resources LSE:POW 37 Effective Interest Rate on Debt % is 23.00% as of Dec. 2025. GuruFocus rates LSE:POW with a GF Score™ of 37/100 and a GF Value™ of £0.04 (Significantly Overvalued). The stock has 2 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Power Metal Resources's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was £0.13 Mil. Power Metal Resources's average total debt for the quarter that ended in Dec. 2025 was £0.58 Mil. Therefore, Power Metal Resources's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 23.00%.

Power Metal Resources  (LSE:POW) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Power Metal Resources Effective Interest Rate on Debt % Related Terms

Power Metal Resources Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Power Metal Resources's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Power Metal Resources Effective Interest Rate on Debt % Chart

Power Metal Resources Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 30.44

Power Metal Resources Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 20.46 23.00

Power Metal Resources Effective Interest Rate on Debt % Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Power Metal Resources's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Power Metal Resources Effective Interest Rate on Debt % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Power Metal Resources's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Power Metal Resources's Effective Interest Rate on Debt % falls into.


LSE:POW
37GF Score
Power Metal Resources PLC LSE:POW
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Power Metal Resources Effective Interest Rate on Debt % Calculation

Power Metal Resources's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Sep. 2023 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -0.179/( (0+0.588)/ 1 )
=-1  *  -0.179/0.588
=30.44 %

where

Total Debt  (A: Sep. 2023 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0
=0

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.588
=0.588

Power Metal Resources's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -0.134/( (0.577+0.588)/ 2 )
=-1  *  -0.134/0.5825
=23.00 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.024 + 0.553
=0.577

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.588
=0.588

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 23.00% mean?
Power Metal Resources (LSE:POW) has a Effective Interest Rate on Debt % of 23.00% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Power Metal Resources and its competitors.
Is Power Metal Resources' Effective Interest Rate on Debt % too high?
Power Metal Resources' current Effective Interest Rate on Debt % is 23.00%. Overall, Power Metal Resources has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power Metal Resources' Effective Interest Rate on Debt % compare to competitors?
Power Metal Resources' Effective Interest Rate on Debt % of 23.00% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Power Metal Resources and its competitors. Power Metal Resources's current Effective Interest Rate on Debt % is 23.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Metal Resources stock overvalued right now?
Based on GuruFocus' analysis, Power Metal Resources (LSE:POW) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.04, compared to a current price of £0.12 — trading 203.1% above its estimated fair value. The current Effective Interest Rate on Debt % is 23.00%. Power Metal Resources' overall GF Score™ is 37/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Power Metal Resources (LSE:POW), the current Effective Interest Rate on Debt % is 23.00% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Power Metal Resources (LSE:POW) Overvalued in 2026?

Based on GuruFocus' analysis, Power Metal Resources stock appears to be overvalued. The current stock price of £0.12 is trading 203.1% above its estimated GF Value™ of £0.04. GuruFocus considers Power Metal Resources to be Significantly Overvalued.

Key valuation signals for LSE:POW:

  • Effective Interest Rate on Debt %: 23.00%
  • GF Value™: £0.04 vs. price of £0.12 (203.1% above fair value)
  • GF Score™: 37/100 with 2 warning signs

No single metric tells the full story. See the LSE:POW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Power Metal Resources Business Description

Other Exchanges POWMF:USA
Address 25 Eccleston Place, London, GBR, SW1W 9NF
Power Metal Resources PLC is an exploration company and development company based in United Kingdom. It is engaged in the exploration of mineral resources and exploration. The Group is involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada, the USA, and other countries. Company geographical segments include: Australia, Botswana, Canada, Saudi Arabia, the UK, and the USA.
37GF Score

Get the complete analysis for LSE:POW

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.12
Price
£0.04
GF Value