BONIA.KL WACC - Weighted Average Cost of Capital

The WACC of Bonia Corporation Bhd (BONIA.KL) is 8.6%.

The Cost of Equity of Bonia Corporation Bhd (BONIA.KL) is 11.70%.

The Cost of Debt of Bonia Corporation Bhd (BONIA.KL) is 5.50%.

	Range	Selected
Cost of equity	8.50% - 14.90%	11.70%
Tax rate	21.50% - 22.80%	22.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.3% - 11.0%	8.6%

WACC

BONIA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.68	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	14.90%

Tax rate	21.50%	22.80%
Debt/Equity ratio	0.7	0.7
Cost of debt	4.00%	7.00%

After-tax WACC	6.3%	11.0%


Selected WACC	8.6%

BONIA.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 BONIA.KL:

cost_of_equity (11.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.68) + 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.