526433.BO WACC - Weighted Average Cost of Capital

The WACC of ASM Technologies Ltd (526433.BO) is 11.2%.

The Cost of Equity of ASM Technologies Ltd (526433.BO) is 11.35%.

The Cost of Debt of ASM Technologies Ltd (526433.BO) is 12.25%.

	Range	Selected
Cost of equity	9.70% - 13.00%	11.35%
Tax rate	35.40% - 37.30%	36.35%
Cost of debt	10.50% - 14.00%	12.25%
WACC	9.6% - 12.8%	11.2%

WACC

526433.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.00%

Tax rate	35.40%	37.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	10.50%	14.00%

After-tax WACC	9.6%	12.8%


Selected WACC	11.2%

526433.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 526433.BO:

cost_of_equity (11.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.