ICTZONE.KL
ICT Zone Asia Bhd
Price:  
0.28 
MYR
Volume:  
20,000
Malaysia | Real Estate Rental and Leasing

ICTZONE.KL WACC - Weighted Average Cost of Capital

The WACC of ICT Zone Asia Bhd (ICTZONE.KL) is 6.7%.

The Cost of Equity of ICT Zone Asia Bhd (ICTZONE.KL) is 8.6%.
The Cost of Debt of ICT Zone Asia Bhd (ICTZONE.KL) is 6.2%.

RangeSelected
Cost of equity6.5% - 10.7%8.6%
Tax rate27.4% - 31.4%29.4%
Cost of debt6.0% - 6.4%6.2%
WACC5.5% - 7.8%6.7%
WACC

ICTZONE.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.40.76
Additional risk adjustments0.0%0.5%
Cost of equity6.5%10.7%
Tax rate27.4%31.4%
Debt/Equity ratio
0.850.85
Cost of debt6.0%6.4%
After-tax WACC5.5%7.8%
Selected WACC6.7%

ICTZONE.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 ICTZONE.KL:

cost_of_equity (8.60%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.4) + 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.