AIM.KL WACC - Weighted Average Cost of Capital

The WACC of Advance Information Marketing Bhd (AIM.KL) is 9.1%.

The Cost of Equity of Advance Information Marketing Bhd (AIM.KL) is 9.50%.

The Cost of Debt of Advance Information Marketing Bhd (AIM.KL) is 6.80%.

	Range	Selected
Cost of equity	6.70% - 12.30%	9.50%
Tax rate	0.20% - 0.30%	0.25%
Cost of debt	6.60% - 7.00%	6.80%
WACC	6.6% - 11.6%	9.1%

WACC

AIM.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.42	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	12.30%

Tax rate	0.20%	0.30%
Debt/Equity ratio	0.14	0.14
Cost of debt	6.60%	7.00%

After-tax WACC	6.6%	11.6%


Selected WACC	9.1%

AIM.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 AIM.KL:

cost_of_equity (9.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.42) + 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.