PAOS.KL
Paos Holdings Bhd
Price:  
0.3 
MYR
Volume:  
38,100
Malaysia | Household Products

PAOS.KL WACC - Weighted Average Cost of Capital

The WACC of Paos Holdings Bhd (PAOS.KL) is 8.0%.

The Cost of Equity of Paos Holdings Bhd (PAOS.KL) is 8.05%.
The Cost of Debt of Paos Holdings Bhd (PAOS.KL) is 7.4%.

RangeSelected
Cost of equity6.9% - 9.2%8.05%
Tax rate24.0% - 24.0%24%
Cost of debt7.0% - 7.8%7.4%
WACC6.9% - 9.2%8.0%
WACC

PAOS.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.450.57
Additional risk adjustments0.0%0.5%
Cost of equity6.9%9.2%
Tax rate24.0%24.0%
Debt/Equity ratio
0.010.01
Cost of debt7.0%7.8%
After-tax WACC6.9%9.2%
Selected WACC8.0%

PAOS.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 PAOS.KL:

cost_of_equity (8.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.45) + 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.