The WACC of Aspire Global PLC (ASPIRE.ST) is 15.8%.
Range | Selected | |
Cost of equity | 6.40% - 8.60% | 7.50% |
Tax rate | 7.30% - 8.20% | 7.75% |
Cost of debt | 4.00% - 609.90% | 306.95% |
WACC | 6.3% - 25.4% | 15.8% |
Category | Low | High |
Long-term bond rate | 2.3% | 2.8% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 0.86 | 0.91 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 8.60% |
Tax rate | 7.30% | 8.20% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 4.00% | 609.90% |
After-tax WACC | 6.3% | 25.4% |
Selected WACC | 15.8% | |
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 ASPIRE.ST:
cost_of_equity (7.50%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (0.86) + 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.