3A.KL
Three-A Resources Bhd
Price:  
0.76 
MYR
Volume:  
13,200.00
Malaysia | Food Products
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3A.KL WACC - Weighted Average Cost of Capital

The WACC of Three-A Resources Bhd (3A.KL) is 9.4%.

The Cost of Equity of Three-A Resources Bhd (3A.KL) is 9.45%.
The Cost of Debt of Three-A Resources Bhd (3A.KL) is 4.25%.

Range Selected
Cost of equity 8.20% - 10.70% 9.45%
Tax rate 24.80% - 25.70% 25.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.2% - 10.6% 9.4%
WACC

3A.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.65 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.70%
Tax rate 24.80% 25.70%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 8.2% 10.6%
Selected WACC 9.4%

3A.KL'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 3A.KL:

cost_of_equity (9.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.65) + 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.