AMRK.TA WACC - Weighted Average Cost of Capital

The WACC of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 8.2%.

The Cost of Equity of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 9.05%.

The Cost of Debt of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 6.15%.

	Range	Selected
Cost of equity	7.90% - 10.20%	9.05%
Tax rate	31.00% - 36.30%	33.65%
Cost of debt	5.90% - 6.40%	6.15%
WACC	7.2% - 9.2%	8.2%

WACC

AMRK.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.20%

Tax rate	31.00%	36.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	5.90%	6.40%

After-tax WACC	7.2%	9.2%


Selected WACC	8.2%

AMRK.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 AMRK.TA:

cost_of_equity (9.05%) = 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.