AEMULUS.KL WACC - Weighted Average Cost of Capital

The WACC of Aemulus Holdings Bhd (AEMULUS.KL) is 8.6%.

The Cost of Equity of Aemulus Holdings Bhd (AEMULUS.KL) is 7.60%.

The Cost of Debt of Aemulus Holdings Bhd (AEMULUS.KL) is 10.70%.

	Range	Selected
Cost of equity	6.20% - 9.00%	7.60%
Tax rate	1.50% - 2.20%	1.85%
Cost of debt	5.80% - 15.60%	10.70%
WACC	6.1% - 11.1%	8.6%

WACC

AEMULUS.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.36	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.00%

Tax rate	1.50%	2.20%
Debt/Equity ratio	0.52	0.52
Cost of debt	5.80%	15.60%

After-tax WACC	6.1%	11.1%


Selected WACC	8.6%

AEMULUS.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 AEMULUS.KL:

cost_of_equity (7.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.36) + 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.