ASHM.L
Ashmore Group PLC
Price:  
165.10 
GBP
Volume:  
683,755.00
United Kingdom | Capital Markets
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ASHM.L WACC - Weighted Average Cost of Capital

The WACC of Ashmore Group PLC (ASHM.L) is 11.0%.

The Cost of Equity of Ashmore Group PLC (ASHM.L) is 11.05%.
The Cost of Debt of Ashmore Group PLC (ASHM.L) is 4.50%.

Range Selected
Cost of equity 9.30% - 12.80% 11.05%
Tax rate 22.10% - 22.50% 22.30%
Cost of debt 4.40% - 4.60% 4.50%
WACC 9.3% - 12.7% 11.0%
WACC

ASHM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.89 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.80%
Tax rate 22.10% 22.50%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.40% 4.60%
After-tax WACC 9.3% 12.7%
Selected WACC 11.0%

ASHM.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 ASHM.L:

cost_of_equity (11.05%) = 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.