ARNA.TA WACC - Weighted Average Cost of Capital
The WACC of Arena Star Group Ltd (ARNA.TA) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.8% - 10.4% | 8.1% |
| Tax rate | 18.8% - 24.3% | 21.55% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 4.7% - 7.7% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.52 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 10.4% |
| Tax rate | 18.8% | 24.3% |
| Debt/Equity ratio | 0.73 | 0.73 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 4.7% | 7.7% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARNA.TA | Arena Star Group Ltd | 0.73 | 1.66 | 1.05 |
| 586.SI | Global Dragon Ltd | 1.64 | 3.55 | 1.54 |
| 593.HK | DreamEast Group Ltd | 56.64 | -0.7 | -0.02 |
| ARPT.TA | Airport City Ltd | 0.97 | 1.38 | 0.78 |
| AVLN.TA | Aviv Arlon Ltd | 0.29 | 0.91 | 0.74 |
| BIPP.JK | Bhuwanatala Indah Permai Tbk PT | 3.12 | -0.1 | -0.03 |
| LBTL.TA | A Libental Holdings Ltd | 2.18 | 0.27 | 0.1 |
| PTBL.TA | Property and Building Corp Ltd | 6.63 | 3.08 | 0.49 |
| SLARL.TA | Sella Capital Real Estate Ltd | 1.64 | 1.43 | 0.62 |
| VILR.TA | Villar International Ltd | 0.14 | 1.4 | 1.26 |
| Low | High | |
| Unlevered beta | 0.57 | 0.76 |
| Relevered beta | 0.28 | 1 |
| Adjusted relevered beta | 0.52 | 1 |
ARNA.TA'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 ARNA.TA:
cost_of_equity (8.10%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (0.52) + 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.