FIMACOR.KL
Fima Corporation Bhd
Price:  
1.77 
MYR
Volume:  
12,100.00
Malaysia | Commercial Services & Supplies
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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 5.00%.

Range Selected
Cost of equity 8.30% - 10.60% 9.45%
Tax rate 20.00% - 21.60% 20.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 9.4% 8.4%
WACC

FIMACOR.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.66 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.60%
Tax rate 20.00% 21.60%
Debt/Equity ratio 0.23 0.23
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 9.4%
Selected WACC 8.4%

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.