SAT.V WACC - Weighted Average Cost of Capital

The WACC of Asian Television Network International Ltd (SAT.V) is 5.8%.

The Cost of Equity of Asian Television Network International Ltd (SAT.V) is 6.40%.

The Cost of Debt of Asian Television Network International Ltd (SAT.V) is 6.55%.

	Range	Selected
Cost of equity	5.60% - 7.20%	6.40%
Tax rate	8.70% - 28.10%	18.40%
Cost of debt	6.10% - 7.00%	6.55%
WACC	5.6% - 6.0%	5.8%

WACC

SAT.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.34	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.20%

Tax rate	8.70%	28.10%
Debt/Equity ratio	1.19	1.19
Cost of debt	6.10%	7.00%

After-tax WACC	5.6%	6.0%


Selected WACC	5.8%

SAT.V'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 SAT.V:

cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * 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.