BINACOM.KL WACC - Weighted Average Cost of Capital

The WACC of Binasat Communications Bhd (BINACOM.KL) is 8.4%.

The Cost of Equity of Binasat Communications Bhd (BINACOM.KL) is 10.15%.

The Cost of Debt of Binasat Communications Bhd (BINACOM.KL) is 4.75%.

	Range	Selected
Cost of equity	7.30% - 13.00%	10.15%
Tax rate	18.70% - 22.60%	20.65%
Cost of debt	4.00% - 5.50%	4.75%
WACC	6.2% - 10.6%	8.4%

WACC

BINACOM.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.51	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	13.00%

Tax rate	18.70%	22.60%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	5.50%

After-tax WACC	6.2%	10.6%


Selected WACC	8.4%

BINACOM.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 BINACOM.KL:

cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.51) + 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.