ALAQAR.KL WACC - Weighted Average Cost of Capital
The WACC of Al-Aqar Healthcare REIT (ALAQAR.KL) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 8.5% | 7.65% |
| Tax rate | 0.3% - 0.6% | 0.45% |
| Cost of debt | 4.0% - 6.9% | 5.45% |
| WACC | 5.7% - 7.8% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.44 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 8.5% |
| Tax rate | 0.3% | 0.6% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 6.9% |
| After-tax WACC | 5.7% | 7.8% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALAQAR.KL | Al-Aqar Healthcare REIT | 0.72 | 0.11 | 0.06 |
| ALSREIT.KL | Al-Salam Real Estate Investment Trust | 2.66 | 0.64 | 0.17 |
| AMFIRST.KL | AmFIRST Real Estate Investment Trust | 3.78 | 0.49 | 0.1 |
| ARREIT.KL | AmanahRaya Real Estate Investment Trust | 2.5 | 0.33 | 0.09 |
| ATRIUM.KL | Atrium Real Estate Investment Trust | 0.84 | 0.1 | 0.06 |
| AW9U.SI | First Real Estate Investment Trust | 0.8 | 0.44 | 0.25 |
| CMMT.KL | CapitaLand Malaysia Mall Trust | 1.18 | -0.05 | -0.02 |
| HEKTAR.KL | Hektar Real Estate Investment Trust | 1.92 | 0.45 | 0.16 |
| SENTRAL.KL | Sentral REIT | 1.24 | 0.26 | 0.12 |
| UOAREIT.KL | UOA Real Estate Investment Trust | 1.29 | 0.28 | 0.12 |
| Low | High | |
| Unlevered beta | 0.1 | 0.12 |
| Relevered beta | 0.16 | 0.21 |
| Adjusted relevered beta | 0.44 | 0.47 |
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 (7.65%) = 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.