AEM.KL WACC - Weighted Average Cost of Capital

The WACC of AE Multi Holdings Bhd (AEM.KL) is 10.1%.

The Cost of Equity of AE Multi Holdings Bhd (AEM.KL) is 31.15%.

The Cost of Debt of AE Multi Holdings Bhd (AEM.KL) is 6.60%.

	Range	Selected
Cost of equity	23.90% - 38.40%	31.15%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	6.20% - 7.00%	6.60%
WACC	8.7% - 11.5%	10.1%

WACC

AEM.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	2.93	4.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.90%	38.40%

Tax rate	0.10%	0.30%
Debt/Equity ratio	5.95	5.95
Cost of debt	6.20%	7.00%

After-tax WACC	8.7%	11.5%


Selected WACC	10.1%

AEM.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 AEM.KL:

cost_of_equity (31.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (2.93) + 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.