AURA.TA WACC - Weighted Average Cost of Capital

The WACC of Aura Investments Ltd (AURA.TA) is 8.3%.

The Cost of Equity of Aura Investments Ltd (AURA.TA) is 9.40%.

The Cost of Debt of Aura Investments Ltd (AURA.TA) is 7.45%.

	Range	Selected
Cost of equity	8.10% - 10.70%	9.40%
Tax rate	20.20% - 21.90%	21.05%
Cost of debt	6.50% - 8.40%	7.45%
WACC	7.2% - 9.4%	8.3%

WACC

AURA.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.54	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.70%

Tax rate	20.20%	21.90%
Debt/Equity ratio	0.48	0.48
Cost of debt	6.50%	8.40%

After-tax WACC	7.2%	9.4%


Selected WACC	8.3%

AURA.TA'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 AURA.TA:

cost_of_equity (9.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.