ASTRO.KL
Astro Malaysia Holdings Bhd
Price:  
0.15 
MYR
Volume:  
523,400.00
Malaysia | Media
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ASTRO.KL WACC - Weighted Average Cost of Capital

The WACC of Astro Malaysia Holdings Bhd (ASTRO.KL) is 8.8%.

The Cost of Equity of Astro Malaysia Holdings Bhd (ASTRO.KL) is 13.95%.
The Cost of Debt of Astro Malaysia Holdings Bhd (ASTRO.KL) is 10.40%.

Range Selected
Cost of equity 12.00% - 15.90% 13.95%
Tax rate 25.20% - 27.30% 26.25%
Cost of debt 5.20% - 15.60% 10.40%
WACC 5.4% - 12.2% 8.8%
WACC

ASTRO.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.2 1.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.00% 15.90%
Tax rate 25.20% 27.30%
Debt/Equity ratio 4.4 4.4
Cost of debt 5.20% 15.60%
After-tax WACC 5.4% 12.2%
Selected WACC 8.8%

ASTRO.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 ASTRO.KL:

cost_of_equity (13.95%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.2) + 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.