BIPORT.KL WACC - Weighted Average Cost of Capital

The WACC of Bintulu Port Holdings Bhd (BIPORT.KL) is 8.1%.

The Cost of Equity of Bintulu Port Holdings Bhd (BIPORT.KL) is 10.40%.

The Cost of Debt of Bintulu Port Holdings Bhd (BIPORT.KL) is 4.25%.

	Range	Selected
Cost of equity	9.00% - 11.80%	10.40%
Tax rate	25.00% - 27.10%	26.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.1% - 9.1%	8.1%

WACC

BIPORT.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.76	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.80%

Tax rate	25.00%	27.10%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	4.50%

After-tax WACC	7.1%	9.1%


Selected WACC	8.1%

BIPORT.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 BIPORT.KL:

cost_of_equity (10.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.76) + 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.