ASLE
AerSale Corp
Price:  
6.16 
USD
Volume:  
1,636,341.00
United States | Aerospace & Defense
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AerSale WACC - Weighted Average Cost of Capital

The WACC of AerSale Corp (ASLE) is 9.1%.

The Cost of Equity of AerSale Corp (ASLE) is 9.55%.
The Cost of Debt of AerSale Corp (ASLE) is 7.50%.

Range Selected
Cost of equity 8.40% - 10.70% 9.55%
Tax rate 24.40% - 24.80% 24.60%
Cost of debt 7.50% - 7.50% 7.50%
WACC 8.1% - 10.1% 9.1%
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 0.98 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.70%
Tax rate 24.40% 24.80%
Debt/Equity ratio 0.12 0.12
Cost of debt 7.50% 7.50%
After-tax WACC 8.1% 10.1%
Selected WACC 9.1%

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 (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.98) + 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.