ICTZONE.KL
ICT Zone Asia Bhd
Price:  
0.28 
MYR
Volume:  
20,000.00
Malaysia | N/A
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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 8.60%.
The Cost of Debt of ICT Zone Asia Bhd (ICTZONE.KL) is 6.20%.

Range Selected
Cost of equity 6.50% - 10.70% 8.60%
Tax rate 27.40% - 31.40% 29.40%
Cost of debt 6.00% - 6.40% 6.20%
WACC 5.5% - 7.8% 6.7%
WACC

ICTZONE.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.4 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 10.70%
Tax rate 27.40% 31.40%
Debt/Equity ratio 0.85 0.85
Cost of debt 6.00% 6.40%
After-tax WACC 5.5% 7.8%
Selected WACC 6.7%

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.