BCB.KL
BCB Bhd
Price:  
0.27 
MYR
Volume:  
78,100.00
Malaysia | Real Estate Management & Development
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BCB.KL WACC - Weighted Average Cost of Capital

The WACC of BCB Bhd (BCB.KL) is 5.1%.

The Cost of Equity of BCB Bhd (BCB.KL) is 8.45%.
The Cost of Debt of BCB Bhd (BCB.KL) is 5.60%.

Range Selected
Cost of equity 7.00% - 9.90% 8.45%
Tax rate 36.70% - 39.50% 38.10%
Cost of debt 5.20% - 6.00% 5.60%
WACC 4.5% - 5.7% 5.1%
WACC

BCB.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.46 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.90%
Tax rate 36.70% 39.50%
Debt/Equity ratio 2.02 2.02
Cost of debt 5.20% 6.00%
After-tax WACC 4.5% 5.7%
Selected WACC 5.1%

BCB.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 BCB.KL:

cost_of_equity (8.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.46) + 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.