ASB.KL
Advance Synergy Bhd
Price:  
0.08 
MYR
Volume:  
86,100
Malaysia | Industrial Conglomerates

ASB.KL WACC - Weighted Average Cost of Capital

The WACC of Advance Synergy Bhd (ASB.KL) is 7.0%.

The Cost of Equity of Advance Synergy Bhd (ASB.KL) is 7.7%.
The Cost of Debt of Advance Synergy Bhd (ASB.KL) is 6.4%.

RangeSelected
Cost of equity6.4% - 9.0%7.7%
Tax rate6.6% - 12.3%9.45%
Cost of debt5.8% - 7.0%6.4%
WACC6.0% - 8.0%7.0%
WACC

ASB.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.380.53
Additional risk adjustments0.0%0.5%
Cost of equity6.4%9.0%
Tax rate6.6%12.3%
Debt/Equity ratio
0.560.56
Cost of debt5.8%7.0%
After-tax WACC6.0%8.0%
Selected WACC7.0%

ASB.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 ASB.KL:

cost_of_equity (7.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.38) + 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.