AFUJIYA.KL
ABM Fujiya Bhd
Price:  
0.34 
MYR
Volume:  
9,100
Malaysia | Auto Components

AFUJIYA.KL WACC - Weighted Average Cost of Capital

The WACC of ABM Fujiya Bhd (AFUJIYA.KL) is 9.9%.

The Cost of Equity of ABM Fujiya Bhd (AFUJIYA.KL) is 12.3%.
The Cost of Debt of ABM Fujiya Bhd (AFUJIYA.KL) is 14.75%.

RangeSelected
Cost of equity9.0% - 15.6%12.3%
Tax rate31.0% - 37.7%34.35%
Cost of debt5.7% - 23.8%14.75%
WACC4.8% - 15.0%9.9%
WACC

AFUJIYA.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.761.38
Additional risk adjustments0.0%0.5%
Cost of equity9.0%15.6%
Tax rate31.0%37.7%
Debt/Equity ratio
4.844.84
Cost of debt5.7%23.8%
After-tax WACC4.8%15.0%
Selected WACC9.9%

AFUJIYA.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 AFUJIYA.KL:

cost_of_equity (12.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.76) + 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.