Aberdeen Smaller Companies Income Trust PLC (ASCI.L) WACC Analysis

As of May 24, 2025, Aberdeen Smaller Companies Income Trust PLC (ASCI.L) carries a Weighted Average Cost of Capital (WACC) of 10.3%. WACC reflects the blended rate Aberdeen Smaller Companies Income Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 9.7%, the cost of debt is 4.0%, and the effective tax rate is 0.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.96 – 1.02
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.13

What It Means for Investors

With a selected WACC of 10.3%, Aberdeen Smaller Companies Income Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.