BTJ.SI WACC - Weighted Average Cost of Capital

The WACC of A-Sonic Aerospace Ltd (BTJ.SI) is 7.5%.

The Cost of Equity of A-Sonic Aerospace Ltd (BTJ.SI) is 7.75%.

The Cost of Debt of A-Sonic Aerospace Ltd (BTJ.SI) is 4.40%.

	Range	Selected
Cost of equity	6.20% - 9.30%	7.75%
Tax rate	11.80% - 13.40%	12.60%
Cost of debt	4.00% - 4.80%	4.40%
WACC	6.1% - 8.9%	7.5%

WACC

BTJ.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.69	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.30%

Tax rate	11.80%	13.40%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	4.80%

After-tax WACC	6.1%	8.9%


Selected WACC	7.5%

BTJ.SI'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 BTJ.SI:

cost_of_equity (7.75%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.