AEP.V WACC - Weighted Average Cost of Capital

The WACC of Atlas Engineered Products Ltd (AEP.V) is 10.5%.

The Cost of Equity of Atlas Engineered Products Ltd (AEP.V) is 10.80%.

The Cost of Debt of Atlas Engineered Products Ltd (AEP.V) is 14.60%.

	Range	Selected
Cost of equity	9.50% - 12.10%	10.80%
Tax rate	28.20% - 31.60%	29.90%
Cost of debt	13.60% - 15.60%	14.60%
WACC	9.6% - 11.5%	10.5%

WACC

AEP.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.11	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.10%

Tax rate	28.20%	31.60%
Debt/Equity ratio	0.86	0.86
Cost of debt	13.60%	15.60%

After-tax WACC	9.6%	11.5%


Selected WACC	10.5%

AEP.V'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 AEP.V:

cost_of_equity (10.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.