512038.BO WACC - Weighted Average Cost of Capital

The WACC of Aaswa Trading and Exports Ltd (512038.BO) is 11.1%.

The Cost of Equity of Aaswa Trading and Exports Ltd (512038.BO) is 11.30%.

The Cost of Debt of Aaswa Trading and Exports Ltd (512038.BO) is 7.50%.

	Range	Selected
Cost of equity	10.50% - 12.10%	11.30%
Tax rate	25.30% - 25.90%	25.60%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.4% - 11.9%	11.1%

WACC

512038.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.10%

Tax rate	25.30%	25.90%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	7.50%

After-tax WACC	10.4%	11.9%


Selected WACC	11.1%

512038.BO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 512038.BO:

cost_of_equity (11.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.