ARTRONIQ.KL WACC - Weighted Average Cost of Capital
The WACC of Artroniq Berhad (ARTRONIQ.KL) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.4% | 9.45% |
| Tax rate | 24.0% - 24.0% | 24% |
| Cost of debt | 7.0% - 10.1% | 8.55% |
| WACC | 7.2% - 11.0% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.54 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.4% |
| Tax rate | 24.0% | 24.0% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 7.0% | 10.1% |
| After-tax WACC | 7.2% | 11.0% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARTRONIQ.KL | Artroniq Berhad | 0.08 | 0.31 | 0.29 |
| 091970.KQ | Nano Chem Tech Inc | 0.67 | -0.24 | -0.16 |
| 4616.T | Kawakami Paint Mfg Co Ltd | 1.21 | 0.39 | 0.2 |
| 541167.BO | Yasho Industries Ltd | 0.16 | 0.84 | 0.75 |
| ANALABS.KL | Analabs Resources Bhd | 0.85 | 0.05 | 0.03 |
| CHEMBOND.NS | Chembond Chemicals Ltd | 0.02 | 0.28 | 0.28 |
| KARYON.KL | Karyon Industries Bhd | 0.13 | 0.71 | 0.65 |
| SERSOL.KL | Sersol Bhd | 0.02 | 1.2 | 1.18 |
| TECHBND.KL | Techbond Group Bhd | 0.03 | 1.16 | 1.13 |
| TOYOVEN.KL | Toyo Ventures Holdings Bhd | 0.17 | 1.45 | 1.29 |
| Low | High | |
| Unlevered beta | 0.28 | 0.69 |
| Relevered beta | 0.31 | 0.76 |
| Adjusted relevered beta | 0.54 | 0.84 |
ARTRONIQ.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 ARTRONIQ.KL:
cost_of_equity (9.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + 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.