AJI.KL
Ajinomoto Malaysia Bhd
Price:  
14.52 
MYR
Volume:  
8,400.00
Malaysia | Food Products
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AJI.KL WACC - Weighted Average Cost of Capital

The WACC of Ajinomoto Malaysia Bhd (AJI.KL) is 8.1%.

The Cost of Equity of Ajinomoto Malaysia Bhd (AJI.KL) is 8.35%.
The Cost of Debt of Ajinomoto Malaysia Bhd (AJI.KL) is 7.45%.

Range Selected
Cost of equity 6.90% - 9.80% 8.35%
Tax rate 23.70% - 26.50% 25.10%
Cost of debt 4.40% - 10.50% 7.45%
WACC 6.6% - 9.6% 8.1%
WACC

AJI.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.45 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.80%
Tax rate 23.70% 26.50%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.40% 10.50%
After-tax WACC 6.6% 9.6%
Selected WACC 8.1%

AJI.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 AJI.KL:

cost_of_equity (8.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.45) + 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.