CARLSBG.KL WACC - Weighted Average Cost of Capital

The WACC of Carlsberg Brewery Malaysia Bhd (CARLSBG.KL) is 9.2%.

The Cost of Equity of Carlsberg Brewery Malaysia Bhd (CARLSBG.KL) is 9.30%.

The Cost of Debt of Carlsberg Brewery Malaysia Bhd (CARLSBG.KL) is 4.35%.

	Range	Selected
Cost of equity	7.90% - 10.70%	9.30%
Tax rate	21.10% - 22.40%	21.75%
Cost of debt	4.20% - 4.50%	4.35%
WACC	7.9% - 10.6%	9.2%

WACC

CARLSBG.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.6	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.70%

Tax rate	21.10%	22.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.20%	4.50%

After-tax WACC	7.9%	10.6%


Selected WACC	9.2%

CARLSBG.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 CARLSBG.KL:

cost_of_equity (9.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.6) + 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.