BTECH.KL WACC - Weighted Average Cost of Capital

The WACC of Brite Tech Bhd (BTECH.KL) is 9.4%.

The Cost of Equity of Brite Tech Bhd (BTECH.KL) is 14.20%.

The Cost of Debt of Brite Tech Bhd (BTECH.KL) is 4.85%.

	Range	Selected
Cost of equity	11.50% - 16.90%	14.20%
Tax rate	20.50% - 21.80%	21.15%
Cost of debt	4.70% - 5.00%	4.85%
WACC	7.9% - 10.9%	9.4%

WACC

BTECH.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.13	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.90%

Tax rate	20.50%	21.80%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.70%	5.00%

After-tax WACC	7.9%	10.9%


Selected WACC	9.4%

BTECH.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 BTECH.KL:

cost_of_equity (14.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.13) + 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.