APW.AX WACC - Weighted Average Cost of Capital
The WACC of Aims Property Securities Fund (APW.AX) is 7.1%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.2% | 10.75% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 7.8% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.03 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 7.8% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| APW.AX | Aims Property Securities Fund | 0.97 | -1.11 | -0.66 |
| AKL.AX | Auckland Real Estate Trust | 1.07 | 0.36 | 0.2 |
| APD.AX | APN Property Group Ltd | 0.04 | 0.53 | 0.52 |
| APZ.AX | Aspen Group Ltd | 0.32 | 0 | 0 |
| CHC.AX | Charter Hall Group | 0.06 | 1.12 | 1.08 |
| CNI.AX | Centuria Capital Group | 0.28 | 0.93 | 0.78 |
| FSI.AX | Flagship Investments Ltd | 0.38 | 0.87 | 0.69 |
| MGR.AX | Mirvac Group | 0.49 | 0.98 | 0.73 |
| NSX.AX | Nsx Ltd | 0.15 | 1.33 | 1.2 |
| SGP.AX | Stockland Corporation Ltd | 0.35 | 0.94 | 0.75 |
| TGP.AX | 360 Capital Group Ltd | 0.56 | -0.2 | -0.15 |
| Low | High | |
| Unlevered beta | 0.52 | 0.73 |
| Relevered beta | 1.04 | 1.25 |
| Adjusted relevered beta | 1.03 | 1.17 |
APW.AX'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 APW.AX:
cost_of_equity (10.75%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.03) + 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.