AA4.L
Amedeo Air Four Plus Ltd
Price:  
57.60 
GBP
Volume:  
150,359.00
Guernsey | Trading Companies & Distributors
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AA4.L WACC - Weighted Average Cost of Capital

The WACC of Amedeo Air Four Plus Ltd (AA4.L) is 8.4%.

The Cost of Equity of Amedeo Air Four Plus Ltd (AA4.L) is 20.00%.
The Cost of Debt of Amedeo Air Four Plus Ltd (AA4.L) is 6.60%.

Range Selected
Cost of equity 15.90% - 24.10% 20.00%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 4.00% - 9.20% 6.60%
WACC 5.6% - 11.2% 8.4%
WACC

AA4.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.99 2.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.90% 24.10%
Tax rate 0.10% 0.10%
Debt/Equity ratio 6.59 6.59
Cost of debt 4.00% 9.20%
After-tax WACC 5.6% 11.2%
Selected WACC 8.4%

AA4.L'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 AA4.L:

cost_of_equity (20.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.99) + 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.