Adavale ResourcesADRLF WACC % is 7.66% as of Jun. 25, 2026, which is 27% below its 10-year median of 10.50. The stock has 3 warning signs investors should review. Among 184 Other Energy Sources companies, Adavale Resources ranks better than 94.02% on this metric.
As of today (2026-06-25), Adavale Resources's weighted average cost of capital is 7.66%%. Adavale Resources's ROIC % is -16423.40% (calculated using TTM income statement data).
Adavale Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Adavale Resources's weighted average cost of capital is 7.66%%. Adavale Resources's ROIC % is -16423.40% (calculated using TTM income statement data).
Adavale Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Adavale Resources WACC % Historical Data
* Premium members only.
The historical data trend for Adavale Resources's WACC % 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.
For the Uranium subindustry, Adavale Resources's WACC %, along with its competitors' market caps and WACC % 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.
Adavale Resources WACC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Adavale Resources's WACC % distribution charts can be found below:
* The bar in red indicates where Adavale Resources's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Adavale Resources's market capitalization (E) is $8.343 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Adavale Resources's latest one-year semi-annual average Book Value of Debt (D) is $0.047 Mil.
a) weight of equity = E / (E + D) = 8.343 / (8.343 + 0.047) = 0.9944
b) weight of debt = D / (E + D) = 0.047 / (8.343 + 0.047) = 0.0056
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Adavale Resources's beta is 0.4497.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + 0.4497 * 6% = 7.6882%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Adavale Resources's interest expense (positive number) was $0.001 Mil. Its total Book Value of Debt (D) is $0.047 Mil.
Cost of Debt = 0.001 / 0.047 = 2.1277%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -3.383 = 0%.
Adavale Resources's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9944
*
7.6882%
+
0.0056
*
2.1277%
*
(1 - 0%)
=
7.66%
* 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.
Adavale Resources (ADRLF) has a WACC % of 7.66% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Adavale Resources and its competitors. This is 27% below median its historical median of 10.50. Over the past decade, Adavale Resources' WACC % has ranged from 1.35 to 21.69. According to the industry distribution chart, Adavale Resources ranks #11 out of 184 companies in the Other Energy Sources industry, placing it in the top 6%.
Is Adavale Resources' WACC % too high?
Adavale Resources' current WACC % of 7.66% is 27% below median its 10-year median of 10.50. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 21.69. The Other Energy Sources industry median WACC % is 7.42. Adavale Resources' value of 7.66% is 3.2% above this industry median. Based on the distribution chart, Adavale Resources ranks #11 out of 184 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers.
How does Adavale Resources' WACC % compare to UEC and LEU?
According to the Other Energy Sources industry distribution chart, Adavale Resources ranks #11 out of 184 companies for WACC %. This places Adavale Resources in the top 6% of its industry — outperforming the majority of peers. The industry median WACC % is 7.42. Adavale Resources' value of 7.66% is 3.2% above this benchmark. Historically, Adavale Resources' own WACC % has ranged from 1.35 to 21.69 over the past decade. While the company's 10-year median is 10.50 vs. the industry median of 7.42, Adavale Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Other Energy Sources company?
The median WACC % among Other Energy Sources companies is 7.42, based on 184 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adavale Resources's current WACC % of 7.66% is 3.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Adavale Resources and its competitors. For the Other Energy Sources industry, the median WACC % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adavale Resources's current WACC % is 7.66%, which is 27% below median its own 10-year median of 10.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adavale Resources stock overvalued right now?
Adavale Resources (ADRLF) has a current WACC % of 7.66%. The current WACC % is 7.66%, which is 27% below median its 10-year median of 10.50 and 3.2% above the Other Energy Sources industry median of 7.42. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Adavale Resources (ADRLF), the current WACC % is 7.66% as of Jun. 25, 2026. 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.
Adavale Resources Ltd engages in mining exploration and development activities in Australia and Africa. It holds a 100% interest in the Lake Surprise uranium project with three exploration licenses in the northern part of the Lake Frome Embayment, South Australia. It also holds an interest in Kabanga Jirani Nickel Project.
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