ADVCON.KL WACC - Weighted Average Cost of Capital
The WACC of Advancecon Holdings Bhd (ADVCON.KL) is 12.8%.
| Range | Selected | |
| Cost of equity | 11.8% - 16.3% | 14.05% |
| Tax rate | 5.9% - 23.5% | 14.7% |
| Cost of debt | 6.3% - 23.8% | 15.05% |
| WACC | 8.1% - 17.5% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.17 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.8% | 16.3% |
| Tax rate | 5.9% | 23.5% |
| Debt/Equity ratio | 1.7 | 1.7 |
| Cost of debt | 6.3% | 23.8% |
| After-tax WACC | 8.1% | 17.5% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADVCON.KL | Advancecon Holdings Bhd | 1.7 | -0.03 | -0.01 |
| BDB.KL | Bina Darulaman Bhd | 1.43 | 0.33 | 0.14 |
| ECONBHD.KL | Econpile Holdings Bhd | 0.3 | 2.01 | 1.57 |
| FAJAR.KL | Fajarbaru Builder Group Bhd | 0.4 | 1.9 | 1.39 |
| INTA.KL | Inta Bina Group Bhd | 0.47 | 1.7 | 1.18 |
| MELATI.KL | Melati Ehsan Holdings Bhd | 1.22 | 0.67 | 0.32 |
| MITRA.KL | Mitrajaya Holdings Bhd | 0.29 | 0.82 | 0.65 |
| NADIBHD.KL | Gagasan Nadi Cergas Bhd | 0.71 | 0.09 | 0.05 |
| ROHAS.KL | Rohas Tecnic Bhd | 1.36 | 1.51 | 0.67 |
| Y&G.KL | Y&G Corporation Bhd | 0.47 | 0.86 | 0.6 |
| Low | High | |
| Unlevered beta | 0.49 | 0.66 |
| Relevered beta | 1.25 | 1.7 |
| Adjusted relevered beta | 1.17 | 1.47 |
ADVCON.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 ADVCON.KL:
cost_of_equity (14.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.17) + 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.