Paladin EnergyPALAF +2.37%33 WACC % is 12.11% as of Jun. 25, 2026, which is 16% below its 10-year median of 14.50. GuruFocus rates PALAF with a GF Score™ of 33/100. The stock has 4 warning signs investors should review. Among 184 Other Energy Sources companies, Paladin Energy ranks worse than 92.93% on this metric.
As of today (2026-06-25), Paladin Energy's weighted average cost of capital is 12.11%%. Paladin Energy's ROIC % is -2.23% (calculated using TTM income statement data).
Paladin Energy 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.
Paladin Energy (OTCPK:PALAF) 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, Paladin Energy's weighted average cost of capital is 12.11%%. Paladin Energy's ROIC % is -2.23% (calculated using TTM income statement data).
Paladin Energy 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
Paladin Energy WACC % Historical Data
* Premium members only.
The historical data trend for Paladin Energy'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, Paladin Energy'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.
Paladin Energy WACC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Paladin Energy's WACC % distribution charts can be found below:
* The bar in red indicates where Paladin Energy'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, Paladin Energy's market capitalization (E) is $3085.581 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, Paladin Energy's latest one-year semi-annual average Book Value of Debt (D) is $187.2523 Mil.
a) weight of equity = E / (E + D) = 3085.581 / (3085.581 + 187.2523) = 0.9428
b) weight of debt = D / (E + D) = 187.2523 / (3085.581 + 187.2523) = 0.0572
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. Paladin Energy's beta is 1.1413.
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% + 1.1413 * 6% = 11.8378%
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, Paladin Energy's interest expense (positive number) was $30.999 Mil. Its total Book Value of Debt (D) is $187.2523 Mil.
Cost of Debt = 30.999 / 187.2523 = 16.5547%.
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 = 1.217 / -66.793 = -1.82%, which is less than 0%. Therefore it's set to 0%.
Paladin Energy'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)
=
0.9428
*
11.8378%
+
0.0572
*
16.5547%
*
(1 - 0%)
=
12.11%
* 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.
Paladin Energy (PALAF) has a WACC % of 12.11% 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 Paladin Energy and its competitors. This is 16% below median its historical median of 14.50. Over the past decade, Paladin Energy's WACC % has ranged from 6.61 to 28.60. According to the industry distribution chart, Paladin Energy ranks #171 out of 184 companies in the Other Energy Sources industry, placing it in the top 92.9%.
Is Paladin Energy's WACC % too high?
Paladin Energy's current WACC % of 12.11% is 16% below median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 6.61 to a high of 28.60. The Other Energy Sources industry median WACC % is 7.42. Paladin Energy's value of 12.11% is 63.2% above this industry median. Based on the distribution chart, Paladin Energy ranks #171 out of 184 companies in the Other Energy Sources industry, which is in the bottom quartile relative to peers. Overall, Paladin Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Paladin Energy's WACC % compare to UEC and LEU?
According to the Other Energy Sources industry distribution chart, Paladin Energy ranks #171 out of 184 companies for WACC %. This places Paladin Energy in the lower half of its industry. The industry median WACC % is 7.42. Paladin Energy's value of 12.11% is 63.2% above this benchmark. Historically, Paladin Energy's own WACC % has ranged from 6.61 to 28.60 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 7.42, Paladin Energy 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. Paladin Energy's current WACC % of 12.11% is 63.2% 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 Paladin Energy 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. Paladin Energy's current WACC % is 12.11%, which is 16% below median its own 10-year median of 14.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paladin Energy stock overvalued right now?
Paladin Energy (PALAF) has a current WACC % of 12.11%. The current WACC % is 12.11%, which is 16% below median its 10-year median of 14.50 and 63.2% above the Other Energy Sources industry median of 7.42. Paladin Energy's overall GF Score™ is 33/100 with 4 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 Paladin Energy (PALAF), the current WACC % is 12.11% 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.
Paladin Energy Ltd is engaged in the production of uranium, and it operates through its various projects that are located in Australia and Africa. The operating segments of the group are Exploration, Namibia, and Australia. The segment activity in Namibia is the production and sale of uranium from the mines located in these geographic regions. The Australian segment includes its sales, marketing, and corporate functions, and the Exploration segment is focused on developing exploration and evaluation projects in Australia and Canada. The company's projects include Langer Heinrich Mine in Namibia, the Michelin project in Canada, and Manyingee, Carly Bore, and the Mount ISA projects in Australia.
33GF Score
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