The WACC of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 8.2%.
Range | Selected | |
Cost of equity | 7.9% - 10.1% | 9% |
Tax rate | 31.0% - 36.3% | 33.65% |
Cost of debt | 5.8% - 6.4% | 6.1% |
WACC | 7.2% - 9.1% | 8.2% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.5 | 0.6 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.9% | 10.1% |
Tax rate | 31.0% | 36.3% |
Debt/Equity ratio | 0.2 | 0.2 |
Cost of debt | 5.8% | 6.4% |
After-tax WACC | 7.2% | 9.1% |
Selected WACC | 8.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AMRK.TA | Amir Marketing and Investments in Agriculture Ltd | 0.2 | 0.56 | 0.49 |
1001.HK | Hong Kong Shanghai Alliance Holdings Ltd | 5.05 | 0.28 | 0.07 |
1725.TW | Yuan Jen Enterprises Co Ltd | 0.37 | 1 | 0.81 |
3024.T | Create Corp | 0.27 | 0.46 | 0.4 |
7417.T | Nanyo Corp | 0.1 | 0.64 | 0.61 |
7446.T | Tohoku Chemical Co Ltd | 0.2 | 0.32 | 0.28 |
7500.T | Nishikawa Keisoku Co Ltd | 0 | 0.05 | 0.05 |
7619.T | Tanaka Co Ltd | 0.66 | 0.71 | 0.5 |
8046.T | Marufuji Sheet Piling Co Ltd | 0.04 | 0.35 | 0.34 |
8835.T | Taiheiyo Kouhatsu Inc | 3.26 | 0.38 | 0.12 |
P52.SI | Pan-United Corporation Ltd | 0.09 | 0.14 | 0.13 |
Low | High | |
Unlevered beta | 0.28 | 0.4 |
Relevered beta | 0.25 | 0.4 |
Adjusted relevered beta | 0.5 | 0.6 |
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 AMRK.TA:
cost_of_equity (9.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.