ASHG.TA WACC - Weighted Average Cost of Capital

The WACC of Ashtrom Group Ltd (ASHG.TA) is 10.5%.

The Cost of Equity of Ashtrom Group Ltd (ASHG.TA) is 13.90%.

The Cost of Debt of Ashtrom Group Ltd (ASHG.TA) is 10.30%.

	Range	Selected
Cost of equity	12.20% - 15.60%	13.90%
Tax rate	12.00% - 18.60%	15.30%
Cost of debt	4.00% - 16.60%	10.30%
WACC	6.7% - 14.3%	10.5%

WACC

ASHG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.21	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	15.60%

Tax rate	12.00%	18.60%
Debt/Equity ratio	1.72	1.72
Cost of debt	4.00%	16.60%

After-tax WACC	6.7%	14.3%


Selected WACC	10.5%

ASHG.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 ASHG.TA:

cost_of_equity (13.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.