Atlantis Japan Growth Fund Ltd (AJG.L) WACC Analysis

As of June 2, 2025, Atlantis Japan Growth Fund Ltd (AJG.L) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate Atlantis Japan Growth Fund Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 8.2%, the cost of debt is 7.0%, and the effective tax rate is 4.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.7 – 0.95
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.04

What It Means for Investors

With a selected WACC of 9.8%, Atlantis Japan Growth Fund Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.