ATLAN.KL WACC - Weighted Average Cost of Capital

The WACC of Atlan Holdings Bhd (ATLAN.KL) is 9.6%.

The Cost of Equity of Atlan Holdings Bhd (ATLAN.KL) is 11.30%.

The Cost of Debt of Atlan Holdings Bhd (ATLAN.KL) is 4.45%.

	Range	Selected
Cost of equity	9.90% - 12.70%	11.30%
Tax rate	17.40% - 20.90%	19.15%
Cost of debt	4.20% - 4.70%	4.45%
WACC	8.5% - 10.8%	9.6%

WACC

ATLAN.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.89	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.70%

Tax rate	17.40%	20.90%
Debt/Equity ratio	0.28	0.28
Cost of debt	4.20%	4.70%

After-tax WACC	8.5%	10.8%


Selected WACC	9.6%

ATLAN.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 ATLAN.KL:

cost_of_equity (11.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.89) + 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.