BLDPLNT.KL WACC - Weighted Average Cost of Capital
The WACC of BLD Plantation Bhd (BLDPLNT.KL) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.4% | 9.05% |
| Tax rate | 28.6% - 30.1% | 29.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 8.8% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.57 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.4% |
| Tax rate | 28.6% | 30.1% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 8.8% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BLDPLNT.KL | BLD Plantation Bhd | 0.28 | -0.11 | -0.09 |
| CEPAT.KL | Cepatwawasan Group Bhd | 0.28 | 0.55 | 0.46 |
| GOCEAN.KL | Green Ocean Corporation Bhd | 0.72 | -0.76 | -0.5 |
| INNO.KL | Innoprise Plantations Bhd | 0 | 0.53 | 0.53 |
| KMLOONG.KL | Kim Loong Resources Bhd | 0.07 | 0.53 | 0.5 |
| KRETAM.KL | Kretam Holdings Bhd | 0.06 | 0 | 0 |
| KSENG.KL | Keck Seng (Malaysia) Bhd | 0.05 | 0.53 | 0.51 |
| SIMEPLT.KL | Sime Darby Plantation Bhd | 0.19 | 0.71 | 0.62 |
| THPLANT.KL | TH Plantations Bhd | 1.95 | 1.05 | 0.44 |
| UTDPLT.KL | United Plantations Bhd | 0 | 0.09 | 0.09 |
| Low | High | |
| Unlevered beta | 0.3 | 0.48 |
| Relevered beta | 0.36 | 0.57 |
| Adjusted relevered beta | 0.57 | 0.71 |
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.