ANW.L
Aberdeen New Thai Investment Trust PLC
Price:  
398.00 
GBP
Volume:  
2,962.00
United Kingdom | N/A
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ANW.L WACC - Weighted Average Cost of Capital

The WACC of Aberdeen New Thai Investment Trust PLC (ANW.L) is 9.4%.

The Cost of Equity of Aberdeen New Thai Investment Trust PLC (ANW.L) is 10.05%.
The Cost of Debt of Aberdeen New Thai Investment Trust PLC (ANW.L) is 5.50%.

Range Selected
Cost of equity 8.80% - 11.30% 10.05%
Tax rate 2.30% - 4.10% 3.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.1% - 10.7% 9.4%
WACC

ANW.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 1.09 1.16
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.30%
Tax rate 2.30% 4.10%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.00% 7.00%
After-tax WACC 8.1% 10.7%
Selected WACC 9.4%

ANW.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 ANW.L:

cost_of_equity (10.05%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.09) + 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.