APB.KL WACC - Weighted Average Cost of Capital

The WACC of APB Resources Bhd (APB.KL) is 388.5%.

The Cost of Equity of APB Resources Bhd (APB.KL) is 19.10%.

The Cost of Debt of APB Resources Bhd (APB.KL) is 492.30%.

	Range	Selected
Cost of equity	10.60% - 27.60%	19.10%
Tax rate	6.60% - 8.60%	7.60%
Cost of debt	7.00% - 977.60%	492.30%
WACC	7.1% - 769.8%	388.5%

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	2.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	27.60%

Tax rate	6.60%	8.60%
Debt/Equity ratio	6	6
Cost of debt	7.00%	977.60%

After-tax WACC	7.1%	769.8%


Selected WACC	388.5%

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 (19.10%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1) + 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.