ASGR.TA WACC - Weighted Average Cost of Capital
The WACC of Aspen Group Ltd (ASGR.TA) is 7.5%.
| Range | Selected | |
| Cost of equity | 9.9% - 18.1% | 14% |
| Tax rate | 14.4% - 30.0% | 22.2% |
| Cost of debt | 4.0% - 13.3% | 8.65% |
| WACC | 4.3% - 10.6% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.82 | 1.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 18.1% |
| Tax rate | 14.4% | 30.0% |
| Debt/Equity ratio | 6.11 | 6.11 |
| Cost of debt | 4.0% | 13.3% |
| After-tax WACC | 4.3% | 10.6% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASGR.TA | Aspen Group Ltd | 6.11 | 1.45 | 0.25 |
| 89.HK | Tai Sang Land Development Ltd | 5.2 | 0.32 | 0.06 |
| 8944.T | Land Business Co Ltd | 7.8 | 0.82 | 0.11 |
| 898.HK | Multifield International Holdings Ltd | 2.14 | 0.36 | 0.13 |
| 925.HK | Beijing Properties (Holdings) Ltd | 28.31 | -0.17 | -0.01 |
| BYSD.TA | Bayside Land Corporation Ltd | 0.94 | 0.84 | 0.48 |
| DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.5 |
| GZT.TA | Gazit Globe Ltd | 5.08 | 1.36 | 0.27 |
| HDC.VN | Ba Ria Vung Tau House Development JSC | 0.41 | 1.03 | 0.77 |
| LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.63 |
| OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.07 |
| Low | High | |
| Unlevered beta | 0.13 | 0.27 |
| Relevered beta | 0.73 | 2.09 |
| Adjusted relevered beta | 0.82 | 1.73 |
ASGR.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 ASGR.TA:
cost_of_equity (14.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.