INTA.KL WACC - Weighted Average Cost of Capital

The WACC of Inta Bina Group Bhd (INTA.KL) is 7.0%.

The Cost of Equity of Inta Bina Group Bhd (INTA.KL) is 8.40%.

The Cost of Debt of Inta Bina Group Bhd (INTA.KL) is 5.65%.

	Range	Selected
Cost of equity	6.80% - 10.00%	8.40%
Tax rate	29.30% - 31.90%	30.60%
Cost of debt	4.70% - 6.60%	5.65%
WACC	5.7% - 8.3%	7.0%

WACC

INTA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.44	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.00%

Tax rate	29.30%	31.90%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.70%	6.60%

After-tax WACC	5.7%	8.3%


Selected WACC	7.0%

INTA.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 INTA.KL:

cost_of_equity (8.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.44) + 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.