BLDPLNT.KL
BLD Plantation Bhd
Price:  
10.76 
MYR
Volume:  
8,100.00
Malaysia | Food Products
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BLDPLNT.KL WACC - Weighted Average Cost of Capital

The WACC of BLD Plantation Bhd (BLDPLNT.KL) is 7.9%.

The Cost of Equity of BLD Plantation Bhd (BLDPLNT.KL) is 9.30%.
The Cost of Debt of BLD Plantation Bhd (BLDPLNT.KL) is 4.25%.

Range Selected
Cost of equity 8.10% - 10.50% 9.30%
Tax rate 28.60% - 30.10% 29.35%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.9% - 8.9% 7.9%
WACC

BLDPLNT.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.63 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.50%
Tax rate 28.60% 30.10%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.00% 4.50%
After-tax WACC 6.9% 8.9%
Selected WACC 7.9%

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 (9.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.63) + 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.