CNASIA.KL
Cn Asia Corporation Bhd
Price:  
0.07 
MYR
Volume:  
25,000.00
Malaysia | Machinery
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CNASIA.KL WACC - Weighted Average Cost of Capital

The WACC of Cn Asia Corporation Bhd (CNASIA.KL) is 6.6%.

The Cost of Equity of Cn Asia Corporation Bhd (CNASIA.KL) is 7.20%.
The Cost of Debt of Cn Asia Corporation Bhd (CNASIA.KL) is 5.70%.

Range Selected
Cost of equity 5.50% - 8.90% 7.20%
Tax rate 1.60% - 9.50% 5.55%
Cost of debt 4.50% - 6.90% 5.70%
WACC 5.1% - 8.0% 6.6%
WACC

CNASIA.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.17 0.46
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.50% 8.90%
Tax rate 1.60% 9.50%
Debt/Equity ratio 0.49 0.49
Cost of debt 4.50% 6.90%
After-tax WACC 5.1% 8.0%
Selected WACC 6.6%

CNASIA.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 CNASIA.KL:

cost_of_equity (7.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.17) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.