AirAsia X Bhd
KLSE:AAX
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A
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AirAsia X Bhd
KLSE:AAX
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MY |
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Power Corporation of Canada
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CA |
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GK Software SE
XETRA:GKS
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DE |
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Starcore International Mines Ltd
TSX:SAM
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CA |
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M
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Me 2 On Co Ltd
KOSDAQ:201490
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KR |
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Cnova NV
OTC:CNVAF
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NL |
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S
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Srinanaporn Marketing PCL
SET:SNNP
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TH |
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S
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Suzhou Jinhongshun Auto Parts Co Ltd
SSE:603922
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CN |
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Sight Sciences Inc
NASDAQ:SGHT
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US |
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Shanxi Xinghuacun Fen Wine Factory Co Ltd
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CN |
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E
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ED Invest SA
WSE:EDI
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PL |
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Moneysupermarket.Com Group PLC
LSE:MONY
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UK |
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Jiangxi Guotai Group Co Ltd
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CN |
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N
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Norion Bank AB
STO:NORION
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SE |
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Zelira Therapeutics Ltd
ASX:ZLD
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AU |
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Helens International Holdings Co Ltd
HKEX:9869
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CN |
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Zhe Jiang Taihua New Material Co Ltd
SSE:603055
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CN |
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ALK-Abello A/S
CSE:ALK B
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DK |
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I
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Impero A/S
CSE:IMPERO
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DK |
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HKEX:1044
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CN |
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Ningbo Water Meter Co Ltd
SSE:603700
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CN |
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Urban Edge Properties
NYSE:UE
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US |
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C
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CB Group Management Co Ltd
TSE:9852
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Sintex Plastics Technology Ltd
NSE:SPTL
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Discount Rate
AAX Cost of Equity
Discount Rate
AAX's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.67%. The Beta, indicating the stock's volatility relative to the market, is 0.99, while the current Risk-Free Rate, based on government bond yields, is 3.53%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
AAX WACC
Discount Rate
AAX's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 7.1%. This includes the cost of equity at 7.67%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 3.78%, reflecting the interest rate on AAX's debt adjusted for tax benefits. The weight of debt in the capital structure is 14.54%.
What is AAX's discount rate?
AAX 's current Cost of Equity is 7.67%, while its WACC stands at 7.1%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for AAX calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for AAX
How is WACC for AAX calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for AAX
