Vulcan Energy ResourcesASX:VUL -4.17%58 WACC % is 15.36% as of Jun. 28, 2026, which is 7% below its 10-year median of 16.60. GuruFocus rates ASX:VUL with a GF Score™ of 58/100 and a GF Value™ of A$3.48 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,665 Metals & Mining companies, Vulcan Energy Resources ranks worse than 79.92% on this metric.
As of today (2026-06-28), Vulcan Energy Resources's weighted average cost of capital is 15.36%%. Vulcan Energy Resources's ROIC % is -27.24% (calculated using TTM income statement data).
Vulcan Energy 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.
Vulcan Energy Resources (ASX:VUL) WACC % Explanation
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, Vulcan Energy Resources's weighted average cost of capital is 15.36%%. Vulcan Energy Resources's ROIC % is -27.24% (calculated using TTM income statement data).
Vulcan Energy 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.
* 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.
Vulcan Energy Resources WACC % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Vulcan Energy 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.
Vulcan Energy Resources WACC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Vulcan Energy Resources's WACC % distribution charts can be found below:
* The bar in red indicates where Vulcan Energy 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, Vulcan Energy Resources's market capitalization (E) is A$1431.196 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, Vulcan Energy Resources's latest one-year semi-annual average Book Value of Debt (D) is A$24.608 Mil.
a) weight of equity = E / (E + D) = 1431.196 / (1431.196 + 24.608) = 0.9831
b) weight of debt = D / (E + D) = 24.608 / (1431.196 + 24.608) = 0.0169
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. Vulcan Energy Resources's beta is 1.7437.
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% + 1.7437 * 6% = 15.4522%
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, Vulcan Energy Resources's interest expense (positive number) was A$2.481 Mil. Its total Book Value of Debt (D) is A$24.608 Mil.
Cost of Debt = 2.481 / 24.608 = 10.0821%.
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 = 3.354 / -119.545 = -2.81%, which is less than 0%. Therefore it's set to 0%.
Vulcan Energy 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)
=
0.9831
*
15.4522%
+
0.0169
*
10.0821%
*
(1 - 0%)
=
15.36%
* 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.
Vulcan Energy Resources (ASX:VUL) has a WACC % of 15.36% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Vulcan Energy Resources and its competitors. This is near median its historical median of 16.60. Over the past decade, Vulcan Energy Resources' WACC % has ranged from 6.92 to 23.39. According to the industry distribution chart, Vulcan Energy Resources ranks #2130 out of 2665 companies in the Metals & Mining industry, placing it in the top 79.9%.
Is Vulcan Energy Resources' WACC % too high?
Vulcan Energy Resources' current WACC % of 15.36% is near median its 10-year median of 16.60. Over the past 10 years, this metric has ranged from a low of 6.92 to a high of 23.39. The Metals & Mining industry median WACC % is 9.56. Vulcan Energy Resources' value of 15.36% is 60.7% above this industry median. Based on the distribution chart, Vulcan Energy Resources ranks #2130 out of 2665 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Vulcan Energy Resources has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vulcan Energy Resources' WACC % compare to competitors?
According to the Metals & Mining industry distribution chart, Vulcan Energy Resources ranks #2130 out of 2665 companies for WACC %. This places Vulcan Energy Resources in the lower half of its industry. The industry median WACC % is 9.56. Vulcan Energy Resources' value of 15.36% is 60.7% above this benchmark. Historically, Vulcan Energy Resources' own WACC % has ranged from 6.92 to 23.39 over the past decade. While the company's 10-year median is 16.60 vs. the industry median of 9.56, Vulcan Energy 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 a Metals & Mining company?
The median WACC % among Metals & Mining companies is 9.56, based on 2,665 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. Vulcan Energy Resources's current WACC % of 15.36% is 60.7% 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 Vulcan Energy Resources and its competitors. For the Metals & Mining industry, the median WACC % is 9.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vulcan Energy Resources's current WACC % is 15.36%, which is near median its own 10-year median of 16.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vulcan Energy Resources stock overvalued right now?
Based on GuruFocus' analysis, Vulcan Energy Resources (ASX:VUL) is currently considered Modestly Undervalued. The stock's GF Value™ is A$3.48, compared to a current price of A$2.99 — trading 14.1% below its estimated fair value. The current WACC % is 15.36%, which is near median its 10-year median of 16.60 and 60.7% above the Metals & Mining industry median of 9.56. Vulcan Energy Resources' overall GF Score™ is 58/100 with 2 warning signs to review. 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 Vulcan Energy Resources (ASX:VUL), the current WACC % is 15.36% as of Jun. 28, 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.
Is Vulcan Energy Resources (ASX:VUL) Overvalued in 2026?
Based on GuruFocus' analysis, Vulcan Energy Resources stock appears to be undervalued.
The current stock price of A$2.99 is trading 14.1% below its estimated GF Value™ of A$3.48.
GuruFocus considers Vulcan Energy Resources to be Modestly Undervalued.
Key valuation signals for ASX:VUL:
WACC %: 15.36% (near median its 10-year median of 16.60)
GF Value™: A$3.48 vs. price of A$2.99 (14.1% below fair value)
Industry Position: 60.7% above the Metals & Mining median (#2130 of 2665)
No single metric tells the full story. See the ASX:VUL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vulcan Energy Resources Ltd is engaged in geothermal energy and lithium exploration and production. The company's Lionheart Project is an integrated lithium and renewable energy project that produces battery-quality lithium from naturally heated subsurface brine in the Upper Rhine Valley, to deliver a local source of sustainable lithium for the European battery industry, with a co-product of renewable energy for local heating needs. It has developed an aluminate-based sorbent, VULSORB, to produce lithium from subsurface brine and harnesses geothermal energy from its operations in the Upper Rhine Valley. The company has three operating segments based on geographical location: Germany, which derives the maximum revenue, other European countries, and Australia.
58GF Score
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