ASIAPAC.KL WACC - Weighted Average Cost of Capital

The WACC of Asian Pac Holdings Bhd (ASIAPAC.KL) is 6.5%.

The Cost of Equity of Asian Pac Holdings Bhd (ASIAPAC.KL) is 13.85%.

The Cost of Debt of Asian Pac Holdings Bhd (ASIAPAC.KL) is 5.80%.

	Range	Selected
Cost of equity	9.20% - 18.50%	13.85%
Tax rate	19.80% - 29.10%	24.45%
Cost of debt	5.00% - 6.60%	5.80%
WACC	5.2% - 7.8%	6.5%

WACC

ASIAPAC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.79	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	18.50%

Tax rate	19.80%	29.10%
Debt/Equity ratio	3.49	3.49
Cost of debt	5.00%	6.60%

After-tax WACC	5.2%	7.8%


Selected WACC	6.5%

ASIAPAC.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 ASIAPAC.KL:

cost_of_equity (13.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.79) + 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.