ALAQAR.KL WACC - Weighted Average Cost of Capital

The WACC of Al-Aqar Healthcare REIT (ALAQAR.KL) is 6.9%.

The Cost of Equity of Al-Aqar Healthcare REIT (ALAQAR.KL) is 7.85%.

The Cost of Debt of Al-Aqar Healthcare REIT (ALAQAR.KL) is 5.95%.

	Range	Selected
Cost of equity	6.90% - 8.80%	7.85%
Tax rate	0.20% - 0.30%	0.25%
Cost of debt	4.50% - 7.40%	5.95%
WACC	5.7% - 8.1%	6.9%

WACC

ALAQAR.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	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	8.80%

Tax rate	0.20%	0.30%
Debt/Equity ratio	1.01	1.01
Cost of debt	4.50%	7.40%

After-tax WACC	5.7%	8.1%


Selected WACC	6.9%

ALAQAR.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 ALAQAR.KL:

cost_of_equity (7.85%) = 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.