ASTI.CN WACC - Weighted Average Cost of Capital

The WACC of Aquarius Surgical Technologies Inc (ASTI.CN) is 4.2%.

The Cost of Equity of Aquarius Surgical Technologies Inc (ASTI.CN) is 6.35%.

The Cost of Debt of Aquarius Surgical Technologies Inc (ASTI.CN) is 5.50%.

	Range	Selected
Cost of equity	5.20% - 7.50%	6.35%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.1% - 5.3%	4.2%

WACC

ASTI.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.39	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.50%

Tax rate	25.90%	26.50%
Debt/Equity ratio	14.64	14.64
Cost of debt	4.00%	7.00%

After-tax WACC	3.1%	5.3%


Selected WACC	4.2%

ASTI.CN'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 ASTI.CN:

cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * 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.