IMASPRO.KL WACC - Weighted Average Cost of Capital

The WACC of Imaspro Corporation Bhd (IMASPRO.KL) is 12.7%.

The Cost of Equity of Imaspro Corporation Bhd (IMASPRO.KL) is 11.90%.

The Cost of Debt of Imaspro Corporation Bhd (IMASPRO.KL) is 55.05%.

	Range	Selected
Cost of equity	10.50% - 13.30%	11.90%
Tax rate	28.10% - 32.40%	30.25%
Cost of debt	9.00% - 101.10%	55.05%
WACC	10.4% - 14.9%	12.7%

WACC

IMASPRO.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.98	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.30%

Tax rate	28.10%	32.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	9.00%	101.10%

After-tax WACC	10.4%	14.9%


Selected WACC	12.7%

IMASPRO.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 IMASPRO.KL:

cost_of_equity (11.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.98) + 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.