GBGAQRS.KL WACC - Weighted Average Cost of Capital

The WACC of Gabungan AQRS Bhd (GBGAQRS.KL) is 9.3%.

The Cost of Equity of Gabungan AQRS Bhd (GBGAQRS.KL) is 10.50%.

The Cost of Debt of Gabungan AQRS Bhd (GBGAQRS.KL) is 12.40%.

	Range	Selected
Cost of equity	7.20% - 13.80%	10.50%
Tax rate	21.20% - 30.20%	25.70%
Cost of debt	4.00% - 20.80%	12.40%
WACC	4.3% - 14.3%	9.3%

WACC

GBGAQRS.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.5	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	13.80%

Tax rate	21.20%	30.20%
Debt/Equity ratio	2.37	2.37
Cost of debt	4.00%	20.80%

After-tax WACC	4.3%	14.3%


Selected WACC	9.3%

GBGAQRS.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 GBGAQRS.KL:

cost_of_equity (10.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.5) + 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.