AYS.KL WACC - Weighted Average Cost of Capital

The WACC of AYS Ventures Bhd (AYS.KL) is 9.1%.

The Cost of Equity of AYS Ventures Bhd (AYS.KL) is 14.50%.

The Cost of Debt of AYS Ventures Bhd (AYS.KL) is 10.20%.

	Range	Selected
Cost of equity	9.00% - 20.00%	14.50%
Tax rate	21.60% - 22.80%	22.20%
Cost of debt	4.80% - 15.60%	10.20%
WACC	4.7% - 13.5%	9.1%

WACC

AYS.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.76	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	20.00%

Tax rate	21.60%	22.80%
Debt/Equity ratio	4.53	4.53
Cost of debt	4.80%	15.60%

After-tax WACC	4.7%	13.5%


Selected WACC	9.1%

AYS.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 AYS.KL:

cost_of_equity (14.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.76) + 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.