ALLIANZ.KL WACC - Weighted Average Cost of Capital
The WACC of Allianz Malaysia Bhd (ALLIANZ.KL) is 10.6%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.3% | 10.6% |
| Tax rate | 24.1% - 26.1% | 25.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.9% - 12.3% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.74 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.3% |
| Tax rate | 24.1% | 26.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.9% | 12.3% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALLIANZ.KL | Allianz Malaysia Bhd | 0.01 | 0.66 | 0.66 |
| 8050.SR | Salama Cooperative Insurance Company SJSC | 0.05 | 1.63 | 1.58 |
| 8150.SR | Allied Cooperative Insurance Group SJSC | 0.01 | 1.43 | 1.42 |
| 8230.SR | Al Rajhi Company for Cooperative Insurance SJSC | 0 | 1.23 | 1.22 |
| BVH.VN | BaoViet Holdings | 0.08 | 1.45 | 1.37 |
| MNRB.KL | MNRB Holdings Bhd | 0.39 | 0.97 | 0.75 |
| RGSS.ME | SK Rosgosstrakh PAO | 0.01 | 0.12 | 0.12 |
| TAKAFUL.KL | Syarikat Takaful Malaysia Keluarga Bhd | 0 | 0.33 | 0.33 |
| TGH.BK | Thai Group Holdings PCL | 2.29 | 0.2 | 0.07 |
| TUNEPRO.KL | Tune Protect Group Bhd | 0.03 | 0.56 | 0.55 |
| Low | High | |
| Unlevered beta | 0.62 | 0.94 |
| Relevered beta | 0.61 | 0.94 |
| Adjusted relevered beta | 0.74 | 0.96 |
ALLIANZ.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 ALLIANZ.KL:
cost_of_equity (10.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.74) + 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.