IAT.L
Invesco Asia Trust PLC
Price:  
346.00 
GBP
Volume:  
735,485.00
United States | N/A
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IAT.L WACC - Weighted Average Cost of Capital

The WACC of Invesco Asia Trust PLC (IAT.L) is 8.2%.

The Cost of Equity of Invesco Asia Trust PLC (IAT.L) is 8.20%.
The Cost of Debt of Invesco Asia Trust PLC (IAT.L) is 4.25%.

Range Selected
Cost of equity 7.10% - 9.30% 8.20%
Tax rate 1.30% - 2.30% 1.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.1% - 9.2% 8.2%
WACC

IAT.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 0.79 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.30%
Tax rate 1.30% 2.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 7.1% 9.2%
Selected WACC 8.2%

IAT.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 IAT.L:

cost_of_equity (8.20%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.79) + 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.