ACCL.TA WACC - Weighted Average Cost of Capital
The WACC of Accel Solutions Group Ltd (ACCL.TA) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.7% - 10.8% | 9.75% |
| Tax rate | 17.0% - 21.5% | 19.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 9.9% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.63 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 10.8% |
| Tax rate | 17.0% | 21.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 9.9% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACCL.TA | Accel Solutions Group Ltd | 0.16 | 0.62 | 0.54 |
| BYSD.TA | Bayside Land Corporation Ltd | 0.94 | 0.84 | 0.48 |
| DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.5 |
| GZT.TA | Gazit Globe Ltd | 5.08 | 1.36 | 0.27 |
| LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.63 |
| OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.07 |
| Low | High | |
| Unlevered beta | 0.48 | 0.5 |
| Relevered beta | 0.45 | 0.55 |
| Adjusted relevered beta | 0.63 | 0.7 |
ACCL.TA'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 ACCL.TA:
cost_of_equity (9.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.63) + 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.