AAS.WA WACC - Weighted Average Cost of Capital

The WACC of Arts Alliance SA (AAS.WA) is 11.5%.

The Cost of Equity of Arts Alliance SA (AAS.WA) is 12.25%.

The Cost of Debt of Arts Alliance SA (AAS.WA) is 5.00%.

	Range	Selected
Cost of equity	9.80% - 14.70%	12.25%
Tax rate	11.90% - 23.40%	17.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.3% - 13.7%	11.5%

WACC

AAS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.68	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.70%

Tax rate	11.90%	23.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.00%	5.00%

After-tax WACC	9.3%	13.7%


Selected WACC	11.5%

AAS.WA'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 AAS.WA:

cost_of_equity (12.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.68) + 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.