ASLE
AerSale Corp
Price:  
6.20 
USD
Volume:  
184,945.00
United States | Aerospace & Defense
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AerSale WACC - Weighted Average Cost of Capital

The WACC of AerSale Corp (ASLE) is 11.3%.

The Cost of Equity of AerSale Corp (ASLE) is 10.35%.
The Cost of Debt of AerSale Corp (ASLE) is 23.90%.

Range Selected
Cost of equity 8.90% - 11.80% 10.35%
Tax rate 24.40% - 24.80% 24.60%
Cost of debt 23.90% - 23.90% 23.90%
WACC 10.1% - 12.6% 11.3%
WACC

AerSale WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.1 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.80%
Tax rate 24.40% 24.80%
Debt/Equity ratio 0.14 0.14
Cost of debt 23.90% 23.90%
After-tax WACC 10.1% 12.6%
Selected WACC 11.3%

AerSale'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 AerSale:

cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.