ASB.KL WACC - Weighted Average Cost of Capital
The WACC of Advance Synergy Bhd (ASB.KL) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.9% | 7.65% |
| Tax rate | 6.6% - 12.3% | 9.45% |
| Cost of debt | 5.8% - 7.0% | 6.4% |
| WACC | 6.0% - 7.9% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.38 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.9% |
| Tax rate | 6.6% | 12.3% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 5.8% | 7.0% |
| After-tax WACC | 6.0% | 7.9% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASB.KL | Advance Synergy Bhd | 0.6 | 1.36 | 0.87 |
| ASDION.KL | Asdion Bhd | 0 | 0.92 | 0.92 |
| BJCORP.KL | Berjaya Corporation Bhd | 4.85 | 0.13 | 0.02 |
| HID.VN | HALCOM VIETNAM JSC | 2.82 | 0.14 | 0.04 |
| HPPHB.KL | HPP Holdings Bhd | 0.12 | -0.62 | -0.56 |
| INCKEN.KL | Inch Kenneth Kajang Rubber PLC | 0.01 | 0.4 | 0.39 |
| KAMDAR.KL | Kamdar Group (M) Bhd | 1.2 | -0.42 | -0.2 |
| KFIMA.KL | Kumpulan Fima Bhd | 0.55 | 0.87 | 0.58 |
| TEXCHEM.KL | Texchem Resources Bhd | 3.89 | 0.26 | 0.06 |
| WARISAN.KL | Warisan TC Holdings Bhd | 3.72 | 0.23 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.19 |
| Relevered beta | 0.07 | 0.3 |
| Adjusted relevered beta | 0.38 | 0.53 |
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 (7.65%) = 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.