APB.KL
APB Resources Bhd
Price:  
0.24 
MYR
Volume:  
21,500.00
Malaysia | Machinery
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APB.KL WACC - Weighted Average Cost of Capital

The WACC of APB Resources Bhd (APB.KL) is 8.0%.

The Cost of Equity of APB Resources Bhd (APB.KL) is 19.20%.
The Cost of Debt of APB Resources Bhd (APB.KL) is 7.00%.

Range Selected
Cost of equity 13.70% - 24.70% 19.20%
Tax rate 9.60% - 14.50% 12.05%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.4% - 8.7% 8.0%
WACC

APB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.44 2.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.70% 24.70%
Tax rate 9.60% 14.50%
Debt/Equity ratio 5.91 5.91
Cost of debt 7.00% 7.00%
After-tax WACC 7.4% 8.7%
Selected WACC 8.0%

APB.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 APB.KL:

cost_of_equity (19.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.44) + 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.