BINTAI.KL WACC - Weighted Average Cost of Capital

The WACC of Bintai Kinden Corporation Bhd (BINTAI.KL) is 6.9%.

The Cost of Equity of Bintai Kinden Corporation Bhd (BINTAI.KL) is 7.40%.

The Cost of Debt of Bintai Kinden Corporation Bhd (BINTAI.KL) is 10.70%.

	Range	Selected
Cost of equity	6.40% - 8.40%	7.40%
Tax rate	29.20% - 42.20%	35.70%
Cost of debt	5.80% - 15.60%	10.70%
WACC	5.2% - 8.7%	6.9%

WACC

BINTAI.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.38	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.40%

Tax rate	29.20%	42.20%
Debt/Equity ratio	1.2	1.2
Cost of debt	5.80%	15.60%

After-tax WACC	5.2%	8.7%


Selected WACC	6.9%

BINTAI.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 BINTAI.KL:

cost_of_equity (7.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.38) + 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.