BIMB.KL WACC - Weighted Average Cost of Capital
The WACC of BIMB Holdings Bhd (BIMB.KL) is 5.6%.
| Range | Selected | |
| Cost of equity | 12.3% - 16.1% | 14.2% |
| Tax rate | 25.2% - 26.0% | 25.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 5.9% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.24 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.3% | 16.1% |
| Tax rate | 25.2% | 26.0% |
| Debt/Equity ratio | 4.66 | 4.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 5.9% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIMB.KL | BIMB Holdings Bhd | 4.66 | 0.36 | 0.08 |
| ABMB.KL | Alliance Bank Malaysia Bhd | 0.78 | 0.41 | 0.26 |
| AFFIN.KL | Affin Bank Bhd | 2.37 | 1.16 | 0.42 |
| AMBANK.KL | AMMB Holdings Bhd | 1.47 | 1.36 | 0.65 |
| BNII.JK | Bank Maybank Indonesia Tbk PT | 2.29 | 0.45 | 0.17 |
| BTPN.JK | Bank BTPN Tbk PT | 2.63 | 0.58 | 0.2 |
| CIMB.KL | Cimb Group Holdings Bhd | 1.23 | 1.43 | 0.75 |
| HLBANK.KL | Hong Leong Bank Bhd | 0.45 | 0.76 | 0.57 |
| HLFG.KL | Hong Leong Financial Group Bhd | 1.07 | 0.6 | 0.33 |
| RHBBANK.KL | RHB Bank Bhd | 1.07 | 0.61 | 0.34 |
| Low | High | |
| Unlevered beta | 0.3 | 0.37 |
| Relevered beta | 1.36 | 1.66 |
| Adjusted relevered beta | 1.24 | 1.44 |
BIMB.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 BIMB.KL:
cost_of_equity (14.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.24) + 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.