AZRB.KL WACC - Weighted Average Cost of Capital
The WACC of Ahmad Zaki Resources Bhd (AZRB.KL) is 6.7%.
| Range | Selected | |
| Cost of equity | 42.9% - 63.6% | 53.25% |
| Tax rate | 29.2% - 40.0% | 34.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.6% - 6.8% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 5.71 | 7.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 42.9% | 63.6% |
| Tax rate | 29.2% | 40.0% |
| Debt/Equity ratio | 21.93 | 21.93 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.6% | 6.8% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AZRB.KL | Ahmad Zaki Resources Bhd | 21.93 | 2.01 | 0.13 |
| 1953.HK | Rimbaco Group Global Ltd | 0.01 | 0.42 | 0.41 |
| ARK.KL | ARK Resources Holdings Bhd | 0.01 | 0.76 | 0.76 |
| BENALEC.KL | Benalec Holdings Bhd | 0.48 | 1.69 | 1.29 |
| DAYA.KL | Daya Materials Bhd | 20.96 | 1.02 | 0.07 |
| GBGAQRS.KL | Gabungan AQRS Bhd | 1.95 | 2.08 | 0.92 |
| MELATI.KL | Melati Ehsan Holdings Bhd | 1.24 | 1.1 | 0.61 |
| MERCURY.KL | Mercury Industries Bhd | 0.1 | -0.12 | -0.12 |
| VIVOCOM.KL | Vivocom Intl Holdings Bhd | 0.05 | 1.37 | 1.33 |
| Y&G.KL | Y&G Corporation Bhd | 0.43 | 0.86 | 0.67 |
| Low | High | |
| Unlevered beta | 0.53 | 0.71 |
| Relevered beta | 8.03 | 10.7 |
| Adjusted relevered beta | 5.71 | 7.5 |
AZRB.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 AZRB.KL:
cost_of_equity (53.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (5.71) + 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.