ALAQAR.KL WACC - Weighted Average Cost of Capital

The WACC of Al-Aqar Healthcare REIT (ALAQAR.KL) is 6.8%.

The Cost of Equity of Al-Aqar Healthcare REIT (ALAQAR.KL) is 7.70%.

The Cost of Debt of Al-Aqar Healthcare REIT (ALAQAR.KL) is 5.50%.

	Range	Selected
Cost of equity	6.80% - 8.60%	7.70%
Tax rate	0.30% - 0.60%	0.45%
Cost of debt	4.10% - 6.90%	5.50%
WACC	5.7% - 7.9%	6.8%

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	0.44	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	8.60%

Tax rate	0.30%	0.60%
Debt/Equity ratio	0.73	0.73
Cost of debt	4.10%	6.90%

After-tax WACC	5.7%	7.9%


Selected WACC	6.8%

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 (7.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.44) + 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.