ASFT
AppSoft Technologies Inc
Price:  
0.25 
USD
Volume:  
840
United States | Information

ASFT WACC - Weighted Average Cost of Capital

The WACC of AppSoft Technologies Inc (ASFT) is 5.1%.

The Cost of Equity of AppSoft Technologies Inc (ASFT) is 5.65%.
The Cost of Debt of AppSoft Technologies Inc (ASFT) is 5%.

RangeSelected
Cost of equity4.6% - 6.7%5.65%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC4.4% - 5.9%5.1%
WACC

ASFT WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.170.33
Additional risk adjustments0.0%0.5%
Cost of equity4.6%6.7%
Tax rate26.2%27.0%
Debt/Equity ratio
0.390.39
Cost of debt5.0%5.0%
After-tax WACC4.4%5.9%
Selected WACC5.1%

ASFT WACC - Detailed calculations of Beta

LowHigh
Unlevered beta-0.190
Relevered beta-0.240
Adjusted relevered beta0.170.33

ASFT'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 ASFT:

cost_of_equity (5.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.17) + 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.