ASIAPLY.KL WACC - Weighted Average Cost of Capital

The WACC of Asia Poly Holdings Bhd (ASIAPLY.KL) is 9.4%.

The Cost of Equity of Asia Poly Holdings Bhd (ASIAPLY.KL) is 10.90%.

The Cost of Debt of Asia Poly Holdings Bhd (ASIAPLY.KL) is 6.30%.

	Range	Selected
Cost of equity	9.60% - 12.20%	10.90%
Tax rate	3.80% - 5.80%	4.80%
Cost of debt	5.60% - 7.00%	6.30%
WACC	8.3% - 10.5%	9.4%

WACC

ASIAPLY.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.84	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.20%

Tax rate	3.80%	5.80%
Debt/Equity ratio	0.43	0.43
Cost of debt	5.60%	7.00%

After-tax WACC	8.3%	10.5%


Selected WACC	9.4%

ASIAPLY.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 ASIAPLY.KL:

cost_of_equity (10.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.84) + 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.