AML.L WACC - Weighted Average Cost of Capital
The WACC of Aston Martin Lagonda Global Holdings PLC (AML.L) is 8.4%.
| Range | Selected | |
| Cost of equity | 8.4% - 10.9% | 9.65% |
| Tax rate | 9.5% - 11.6% | 10.55% |
| Cost of debt | 7.0% - 10.2% | 8.6% |
| WACC | 7.1% - 9.7% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.74 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 10.9% |
| Tax rate | 9.5% | 11.6% |
| Debt/Equity ratio | 1.84 | 1.84 |
| Cost of debt | 7.0% | 10.2% |
| After-tax WACC | 7.1% | 9.7% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AML.L | Aston Martin Lagonda Global Holdings PLC | 1.84 | 0.77 | 0.29 |
| H9W.DE | HWA AG | 0.54 | 1.69 | 1.15 |
| KABE B.ST | KABE Group AB | 0.03 | 0.02 | 0.02 |
| KARSN.IS | Karsan Otomotiv Sanayii ve Ticaret AS | 0.47 | 1.55 | 1.09 |
| KTA.DE | Knaus Tabbert AG | 2.44 | 1.09 | 0.34 |
| PINF.MI | Pininfarina SpA | 0.3 | 0.32 | 0.25 |
| RNO.PA | Renault SA | 4.89 | 1.11 | 0.21 |
| SCT.LS | Toyota Caetano Portugal SA | 0.55 | 0.16 | 0.1 |
| VOW3.DE | Volkswagen AG | 3.15 | 1.33 | 0.35 |
| FSR | Fisker Inc | 9.59 | 0.95 | 0.1 |
| Low | High | |
| Unlevered beta | 0.23 | 0.31 |
| Relevered beta | 0.61 | 0.78 |
| Adjusted relevered beta | 0.74 | 0.85 |
AML.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 AML.L:
cost_of_equity (9.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.74) + 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.