BLDPLNT.KL
BLD Plantation Bhd
Price:  
10.76 
MYR
Volume:  
8,100
Malaysia | Food Products

BLDPLNT.KL WACC - Weighted Average Cost of Capital

The WACC of BLD Plantation Bhd (BLDPLNT.KL) is 7.7%.

The Cost of Equity of BLD Plantation Bhd (BLDPLNT.KL) is 9.05%.
The Cost of Debt of BLD Plantation Bhd (BLDPLNT.KL) is 4.25%.

RangeSelected
Cost of equity7.7% - 10.4%9.05%
Tax rate28.6% - 30.1%29.35%
Cost of debt4.0% - 4.5%4.25%
WACC6.6% - 8.8%7.7%
WACC

BLDPLNT.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.570.71
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.4%
Tax rate28.6%30.1%
Debt/Equity ratio
0.280.28
Cost of debt4.0%4.5%
After-tax WACC6.6%8.8%
Selected WACC7.7%

BLDPLNT.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 BLDPLNT.KL:

cost_of_equity (9.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.57) + 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.