ANNJOO.KL WACC - Weighted Average Cost of Capital

The WACC of Ann Joo Resources Bhd (ANNJOO.KL) is 6.2%.

The Cost of Equity of Ann Joo Resources Bhd (ANNJOO.KL) is 13.45%.

The Cost of Debt of Ann Joo Resources Bhd (ANNJOO.KL) is 5.50%.

	Range	Selected
Cost of equity	11.50% - 15.40%	13.45%
Tax rate	34.50% - 38.50%	36.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.1% - 7.3%	6.2%

WACC

ANNJOO.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.13	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.40%

Tax rate	34.50%	38.50%
Debt/Equity ratio	2.64	2.64
Cost of debt	4.00%	7.00%

After-tax WACC	5.1%	7.3%


Selected WACC	6.2%

ANNJOO.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 ANNJOO.KL:

cost_of_equity (13.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.13) + 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.