BAUTO.KL
Bermaz Auto Bhd
Price:  
1.01 
MYR
Volume:  
2,454,800.00
Malaysia | Specialty Retail
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BAUTO.KL WACC - Weighted Average Cost of Capital

The WACC of Bermaz Auto Bhd (BAUTO.KL) is 9.6%.

The Cost of Equity of Bermaz Auto Bhd (BAUTO.KL) is 10.25%.
The Cost of Debt of Bermaz Auto Bhd (BAUTO.KL) is 5.00%.

Range Selected
Cost of equity 8.30% - 12.20% 10.25%
Tax rate 22.70% - 23.30% 23.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 11.3% 9.6%
WACC

BAUTO.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.66 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 12.20%
Tax rate 22.70% 23.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 11.3%
Selected WACC 9.6%

BAUTO.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 BAUTO.KL:

cost_of_equity (10.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.66) + 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.