ASIT.L WACC - Weighted Average Cost of Capital

The WACC of Aberforth Split Level Income Trust PLC (ASIT.L) is 9.7%.

The Cost of Equity of Aberforth Split Level Income Trust PLC (ASIT.L) is 11.20%.

The Cost of Debt of Aberforth Split Level Income Trust PLC (ASIT.L) is 4.30%.

	Range	Selected
Cost of equity	9.30% - 13.10%	11.20%
Tax rate	-% - -%	-%
Cost of debt	4.00% - 4.60%	4.30%
WACC	8.2% - 11.3%	9.7%

WACC

ASIT.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	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	13.10%

Tax rate	-%	-%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.00%	4.60%

After-tax WACC	8.2%	11.3%


Selected WACC	9.7%

ASIT.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 ASIT.L:

cost_of_equity (11.20%) = 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.