BTM.KL WACC - Weighted Average Cost of Capital
The WACC of BTM Resources Bhd (BTM.KL) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.1% | 7.75% |
| Tax rate | 0.7% - 2.7% | 1.7% |
| Cost of debt | 5.6% - 7.0% | 6.3% |
| WACC | 6.3% - 8.9% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.38 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.1% |
| Tax rate | 0.7% | 2.7% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.6% | 7.0% |
| After-tax WACC | 6.3% | 8.9% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BTM.KL | BTM Resources Bhd | 0.1 | 0.45 | 0.41 |
| 94.HK | Greenheart Group Ltd | 6.38 | 0.39 | 0.05 |
| JTIASA.KL | Jaya Tiasa Holdings Bhd | 0.17 | 1.65 | 1.41 |
| KAYU.JK | Darmi Bersaudara Tbk PT | 0.66 | -0.9 | -0.55 |
| MENTIGA.KL | Mentiga Corporation Bhd | 1.12 | -0.27 | -0.13 |
| MINHO.KL | Minho (M) Bhd | 0.32 | -0.43 | -0.33 |
| PWORTH.KL | Priceworth International Bhd | 0.11 | 0.71 | 0.65 |
| SUBUR.KL | Subur Tiasa Holdings Bhd | 4.49 | 0.47 | 0.09 |
| TIMWELL.KL | Timberwell Bhd | 0.01 | 1.48 | 1.47 |
| WTK.KL | W T K Holdings Bhd | 1.2 | 0.48 | 0.22 |
| Low | High | |
| Unlevered beta | 0.07 | 0.3 |
| Relevered beta | 0.07 | 0.33 |
| Adjusted relevered beta | 0.38 | 0.55 |
BTM.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 BTM.KL:
cost_of_equity (7.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.38) + 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.