ASGR.TA WACC - Weighted Average Cost of Capital

The WACC of Aspen Group Ltd (ASGR.TA) is 7.5%.

The Cost of Equity of Aspen Group Ltd (ASGR.TA) is 14.00%.

The Cost of Debt of Aspen Group Ltd (ASGR.TA) is 8.65%.

	Range	Selected
Cost of equity	9.90% - 18.10%	14.00%
Tax rate	14.40% - 30.00%	22.20%
Cost of debt	4.00% - 13.30%	8.65%
WACC	4.3% - 10.6%	7.5%

WACC

ASGR.TA WACC calculation

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	9.90%	18.10%

Tax rate	14.40%	30.00%
Debt/Equity ratio	6.11	6.11
Cost of debt	4.00%	13.30%

After-tax WACC	4.3%	10.6%


Selected WACC	7.5%

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.