INARI.KL WACC - Weighted Average Cost of Capital

The WACC of Inari Amertron Bhd (INARI.KL) is 11.5%.

The Cost of Equity of Inari Amertron Bhd (INARI.KL) is 11.55%.

The Cost of Debt of Inari Amertron Bhd (INARI.KL) is 9.10%.

	Range	Selected
Cost of equity	10.20% - 12.90%	11.55%
Tax rate	7.60% - 8.90%	8.25%
Cost of debt	4.40% - 13.80%	9.10%
WACC	10.2% - 12.9%	11.5%

WACC

INARI.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.93	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.90%

Tax rate	7.60%	8.90%
Debt/Equity ratio	0	0
Cost of debt	4.40%	13.80%

After-tax WACC	10.2%	12.9%


Selected WACC	11.5%

INARI.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 INARI.KL:

cost_of_equity (11.55%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.93) + 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.