RSAWIT.KL
Rimbunan Sawit Bhd
Price:  
0.19 
MYR
Volume:  
174,500.00
Malaysia | Food Products
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RSAWIT.KL WACC - Weighted Average Cost of Capital

The WACC of Rimbunan Sawit Bhd (RSAWIT.KL) is 7.6%.

The Cost of Equity of Rimbunan Sawit Bhd (RSAWIT.KL) is 10.05%.
The Cost of Debt of Rimbunan Sawit Bhd (RSAWIT.KL) is 4.45%.

Range Selected
Cost of equity 8.60% - 11.50% 10.05%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.5% - 8.6% 7.6%
WACC

RSAWIT.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.71 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.50%
Tax rate 24.00% 24.00%
Debt/Equity ratio 0.6 0.6
Cost of debt 4.00% 4.90%
After-tax WACC 6.5% 8.6%
Selected WACC 7.6%

RSAWIT.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 RSAWIT.KL:

cost_of_equity (10.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.71) + 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.