ADVENTA.KL
Adventa Bhd
Price:  
0.19 
MYR
Volume:  
31,700.00
Malaysia | Health Care Equipment & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ADVENTA.KL WACC - Weighted Average Cost of Capital

The WACC of Adventa Bhd (ADVENTA.KL) is 10.0%.

The Cost of Equity of Adventa Bhd (ADVENTA.KL) is 8.65%.
The Cost of Debt of Adventa Bhd (ADVENTA.KL) is 19.95%.

Range Selected
Cost of equity 7.10% - 10.20% 8.65%
Tax rate 6.00% - 7.90% 6.95%
Cost of debt 5.00% - 34.90% 19.95%
WACC 6.8% - 13.2% 10.0%
WACC

ADVENTA.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.48 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 10.20%
Tax rate 6.00% 7.90%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 34.90%
After-tax WACC 6.8% 13.2%
Selected WACC 10.0%

ADVENTA.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 ADVENTA.KL:

cost_of_equity (8.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.48) + 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.