DELEUM.KL WACC - Weighted Average Cost of Capital

The WACC of Deleum Bhd (DELEUM.KL) is 11.3%.

The Cost of Equity of Deleum Bhd (DELEUM.KL) is 11.50%.

The Cost of Debt of Deleum Bhd (DELEUM.KL) is 5.50%.

	Range	Selected
Cost of equity	9.60% - 13.40%	11.50%
Tax rate	25.20% - 25.60%	25.40%
Cost of debt	4.40% - 6.60%	5.50%
WACC	9.4% - 13.2%	11.3%

WACC

DELEUM.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.85	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.40%

Tax rate	25.20%	25.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.40%	6.60%

After-tax WACC	9.4%	13.2%


Selected WACC	11.3%

DELEUM.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 DELEUM.KL:

cost_of_equity (11.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.85) + 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.