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What is ABERDEEN EMERGING MARKETS EQUITYOME FUND, WACC %?
ABERDEEN EMERGING MARKETS EQUITYOME FUND,AEF +0.54%35 WACC % is 12.49% as of Aug. 24, 2026, which is 81% above its 10-year median of 6.90. GuruFocus rates AEF with a GF Score™ of 35/100. The stock has 4 warning signs investors should review. Among 1,648 Asset Management companies, ABERDEEN EMERGING MARKETS EQUITYOME FUND, ranks worse than 89.99% on this metric.
As of today (2026-08-24), ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s weighted average cost of capital is 12.49%%. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s ROIC % is 0.00% (calculated using TTM income statement data).
ABERDEEN EMERGING MARKETS EQUITYOME FUND, earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s weighted average cost of capital is 12.49%%. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s ROIC % is 0.00% (calculated using TTM income statement data).
ABERDEEN EMERGING MARKETS EQUITYOME FUND, earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
ABERDEEN EMERGING MARKETS EQUITYOME FUND, WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ABERDEEN EMERGING MARKETS EQUITYOME FUND, WACC % vs Asset Management Industry
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s market capitalization (E) is $381.247 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s latest one-year semi-annual average Book Value of Debt (D) is $33 Mil.
a) weight of equity = E / (E + D) = 381.247 / (381.247 + 33) = 0.9203
b) weight of debt = D / (E + D) = 33 / (381.247 + 33) = 0.0797
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.704%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s beta is 1.3981.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.704% + 1.3981 * 6% = 13.0926%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s interest expense (positive number) was $1.819 Mil. Its total Book Value of Debt (D) is $33 Mil.
Cost of Debt = 1.819 / 33 = 5.5121%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / 95.564 = 0%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ABERDEEN EMERGING MARKETS EQUITYOME FUND, (AEF) has a WACC % of 12.49% as of Aug. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ABERDEEN EMERGING MARKETS EQUITYOME FUND, and its competitors. This is 81% above median its historical median of 6.90. Over the past decade, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s WACC % has ranged from 3.39 to 12.52. According to the industry distribution chart, ABERDEEN EMERGING MARKETS EQUITYOME FUND, ranks #1483 out of 1648 companies in the Asset Management industry, placing it in the top 90%.
Is ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s WACC % too high?
ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s current WACC % of 12.49% is 81% above median its 10-year median of 6.90. Over the past 10 years, this metric has ranged from a low of 3.39 to a high of 12.52. The Asset Management industry median WACC % is 8.39. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s value of 12.49% is 49% above this industry median. Based on the distribution chart, ABERDEEN EMERGING MARKETS EQUITYOME FUND, ranks #1483 out of 1648 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, ABERDEEN EMERGING MARKETS EQUITYOME FUND, has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s WACC % compare to JGH and KTF?
According to the Asset Management industry distribution chart, ABERDEEN EMERGING MARKETS EQUITYOME FUND, ranks #1483 out of 1648 companies for WACC %. This places ABERDEEN EMERGING MARKETS EQUITYOME FUND, in the lower half of its industry. The industry median WACC % is 8.39. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s value of 12.49% is 49% above this benchmark. Historically, ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s own WACC % has ranged from 3.39 to 12.52 over the past decade. While the company's 10-year median is 6.90 vs. the industry median of 8.39, ABERDEEN EMERGING MARKETS EQUITYOME FUND, has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Asset Management company?
The median WACC % among Asset Management companies is 8.39, based on 1,648 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s current WACC % of 12.49% is 49% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ABERDEEN EMERGING MARKETS EQUITYOME FUND, and its competitors. For the Asset Management industry, the median WACC % is 8.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s current WACC % is 12.49%, which is 81% above median its own 10-year median of 6.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABERDEEN EMERGING MARKETS EQUITYOME FUND, stock overvalued right now?
ABERDEEN EMERGING MARKETS EQUITYOME FUND, (AEF) has a current WACC % of 12.49%. The current WACC % is 12.49%, which is 81% above median its 10-year median of 6.90 and 49% above the Asset Management industry median of 8.39. ABERDEEN EMERGING MARKETS EQUITYOME FUND,'s overall GF Score™ is 35/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For ABERDEEN EMERGING MARKETS EQUITYOME FUND, (AEF), the current WACC % is 12.49% as of Aug. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
ABERDEEN EMERGING MARKETS EQUITY INCOME FUND, INC. is a non-diversified closed-end, management investment company. Its investment objective is to seek to provide both current income and long-term capital appreciation. Under normal circumstances, the fund invests a majority of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities. The performance of the fund is measured against the MSCI Emerging Markets ex-China Index. Its investment portfolio consists of equity securities from emerging market companies (excluding China), spanning multiple sectors such as Information Technology, Financials, Industrials, Consumer Discretionary, Real Estate, and others.
35GF Score
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