FIMACOR.KL
Fima Corporation Bhd
Price:  
1.77 
MYR
Volume:  
12,100
Malaysia | Commercial Services & Supplies

FIMACOR.KL WACC - Weighted Average Cost of Capital

The WACC of Fima Corporation Bhd (FIMACOR.KL) is 8.4%.

The Cost of Equity of Fima Corporation Bhd (FIMACOR.KL) is 9.45%.
The Cost of Debt of Fima Corporation Bhd (FIMACOR.KL) is 5%.

RangeSelected
Cost of equity8.3% - 10.6%9.45%
Tax rate20.0% - 21.6%20.8%
Cost of debt5.0% - 5.0%5%
WACC7.5% - 9.4%8.4%
WACC

FIMACOR.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.660.75
Additional risk adjustments0.0%0.5%
Cost of equity8.3%10.6%
Tax rate20.0%21.6%
Debt/Equity ratio
0.230.23
Cost of debt5.0%5.0%
After-tax WACC7.5%9.4%
Selected WACC8.4%

FIMACOR.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 FIMACOR.KL:

cost_of_equity (9.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.66) + 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.