ASPL.L WACC - Weighted Average Cost of Capital
The WACC of Aseana Properties Ltd (ASPL.L) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.7% | 7.25% |
| Tax rate | 2.0% - 2.2% | 2.1% |
| Cost of debt | 7.0% - 8.5% | 7.75% |
| WACC | 6.4% - 8.4% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.34 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.7% |
| Tax rate | 2.0% | 2.2% |
| Debt/Equity ratio | 1.37 | 1.37 |
| Cost of debt | 7.0% | 8.5% |
| After-tax WACC | 6.4% | 8.4% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASPL.L | Aseana Properties Ltd | 1.37 | -0.49 | -0.21 |
| DCI.L | Dolphin Capital Investors Ltd | 0.54 | 0.01 | 0 |
| EDI.WA | ED Invest SA | 0.09 | 0.16 | 0.15 |
| ETLN.L | Etalon Group PLC | 3.74 | 0.96 | 0.2 |
| HMI.WA | HM Inwest SA | 0.54 | -0.07 | -0.05 |
| KALD.IC | Kaldalon hf | 1.74 | 0.65 | 0.24 |
| LKD.WA | Lokum Deweloper SA | 0.19 | -0.06 | -0.05 |
| NUVA.DE | Noratis AG | 35.82 | 0.07 | 0 |
| SOLON.OL | Solon Eiendom ASA | 1.24 | 0.77 | 0.35 |
| TRI.WA | Triton Development SA | 0.1 | 0.17 | 0.15 |
| Low | High | |
| Unlevered beta | 0 | 0.15 |
| Relevered beta | 0.01 | 0.36 |
| Adjusted relevered beta | 0.34 | 0.57 |
ASPL.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 ASPL.L:
cost_of_equity (7.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.00%) * adjusted_beta (0.34) + 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.