APB.KL
APB Resources Bhd
Price:  
0.21 
MYR
Volume:  
33,500.00
Malaysia | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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.