ASLI.L WACC - Weighted Average Cost of Capital

The WACC of Aberdeen Standard European Logistics Income PLC (ASLI.L) is 5.7%.

The Cost of Equity of Aberdeen Standard European Logistics Income PLC (ASLI.L) is 7.25%.

The Cost of Debt of Aberdeen Standard European Logistics Income PLC (ASLI.L) is 4.85%.

	Range	Selected
Cost of equity	6.30% - 8.20%	7.25%
Tax rate	17.20% - 20.60%	18.90%
Cost of debt	4.00% - 5.70%	4.85%
WACC	4.9% - 6.5%	5.7%

WACC

ASLI.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.39	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.20%

Tax rate	17.20%	20.60%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.00%	5.70%

After-tax WACC	4.9%	6.5%


Selected WACC	5.7%

ASLI.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 ASLI.L:

cost_of_equity (7.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.