ARPT.TA WACC - Weighted Average Cost of Capital

The WACC of Airport City Ltd (ARPT.TA) is 9.1%.

The Cost of Equity of Airport City Ltd (ARPT.TA) is 13.75%.

The Cost of Debt of Airport City Ltd (ARPT.TA) is 4.95%.

	Range	Selected
Cost of equity	11.90% - 15.60%	13.75%
Tax rate	21.80% - 25.10%	23.45%
Cost of debt	4.00% - 5.90%	4.95%
WACC	7.8% - 10.4%	9.1%

WACC

ARPT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.15	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.60%

Tax rate	21.80%	25.10%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.00%	5.90%

After-tax WACC	7.8%	10.4%


Selected WACC	9.1%

ARPT.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 ARPT.TA:

cost_of_equity (13.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.