ASAI.L WACC - Weighted Average Cost of Capital
The WACC of ASA International Group PLC (ASAI.L) is 8.8%.
| Range | Selected | |
| Cost of equity | 9.3% - 13.8% | 11.55% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 7.6% - 11.0% | 9.3% |
| WACC | 7.2% - 10.5% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.89 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 13.8% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 2.09 | 2.09 |
| Cost of debt | 7.6% | 11.0% |
| After-tax WACC | 7.2% | 10.5% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASAI.L | ASA International Group PLC | 2.09 | 1.26 | 0.47 |
| APP.L | Appreciate Group PLC | 0.07 | 1.29 | 1.21 |
| MCL.L | Morses Club PLC | 48.49 | 2.08 | 0.05 |
| MFX.L | Manx Financial Group PLC | 1.33 | 1.69 | 0.81 |
| MOL.MI | Gruppo MutuiOnline SpA | 0.19 | 0.65 | 0.56 |
| PCF.L | PCF Group PLC | 175.29 | 1.35 | 0.01 |
| QLIRO.ST | Qliro AB | 5.48 | 0.42 | 0.08 |
| RFX.L | Ramsdens Holdings PLC | 0.16 | 0.55 | 0.48 |
| SUS.L | S&U PLC | 0.98 | 0 | 0 |
| TSL.L | Thinksmart Ltd | 0 | 0.83 | 0.83 |
| Low | High | |
| Unlevered beta | 0.31 | 0.52 |
| Relevered beta | 0.84 | 1.39 |
| Adjusted relevered beta | 0.89 | 1.26 |
ASAI.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 ASAI.L:
cost_of_equity (11.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.89) + 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.