ASIAPAC.KL WACC - Weighted Average Cost of Capital

The WACC of Asian Pac Holdings Bhd (ASIAPAC.KL) is 8.5%.

The Cost of Equity of Asian Pac Holdings Bhd (ASIAPAC.KL) is 16.95%.

The Cost of Debt of Asian Pac Holdings Bhd (ASIAPAC.KL) is 7.75%.

	Range	Selected
Cost of equity	11.20% - 22.70%	16.95%
Tax rate	10.50% - 20.20%	15.35%
Cost of debt	6.50% - 9.00%	7.75%
WACC	6.9% - 10.2%	8.5%

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	1.09	2.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	22.70%

Tax rate	10.50%	20.20%
Debt/Equity ratio	4.2	4.2
Cost of debt	6.50%	9.00%

After-tax WACC	6.9%	10.2%


Selected WACC	8.5%

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 (16.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.09) + 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.