AHIX
ALUF Holdings Inc
Price:  
0.02 
USD
Volume:  
22,690
United States | Information

AHIX WACC - Weighted Average Cost of Capital

The WACC of ALUF Holdings Inc (AHIX) is 6.0%.

The Cost of Equity of ALUF Holdings Inc (AHIX) is 6%.
The Cost of Debt of ALUF Holdings Inc (AHIX) is 4.25%.

RangeSelected
Cost of equity5.3% - 6.7%6%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 4.5%4.25%
WACC5.3% - 6.7%6.0%
WACC

AHIX WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.320.33
Additional risk adjustments0.0%0.5%
Cost of equity5.3%6.7%
Tax rate26.2%27.0%
Debt/Equity ratio
0.020.02
Cost of debt4.0%4.5%
After-tax WACC5.3%6.7%
Selected WACC6.0%

AHIX'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 AHIX:

cost_of_equity (6.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.