BTECH.KL
Brite Tech Bhd
Price:  
0.26 
MYR
Volume:  
27,800.00
Malaysia | Commercial Services & Supplies
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BTECH.KL WACC - Weighted Average Cost of Capital

The WACC of Brite Tech Bhd (BTECH.KL) is 8.8%.

The Cost of Equity of Brite Tech Bhd (BTECH.KL) is 13.20%.
The Cost of Debt of Brite Tech Bhd (BTECH.KL) is 4.85%.

Range Selected
Cost of equity 10.90% - 15.50% 13.20%
Tax rate 20.50% - 21.80% 21.15%
Cost of debt 4.70% - 5.00% 4.85%
WACC 7.6% - 10.1% 8.8%
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 1.04 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.90% 15.50%
Tax rate 20.50% 21.80%
Debt/Equity ratio 0.86 0.86
Cost of debt 4.70% 5.00%
After-tax WACC 7.6% 10.1%
Selected WACC 8.8%

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 (13.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.04) + 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.