RSAWIT.KL
Rimbunan Sawit Bhd
Price:  
0.18 
MYR
Volume:  
10,200.00
Malaysia | Food Products
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RSAWIT.KL WACC - Weighted Average Cost of Capital

The WACC of Rimbunan Sawit Bhd (RSAWIT.KL) is 7.5%.

The Cost of Equity of Rimbunan Sawit Bhd (RSAWIT.KL) is 10.20%.
The Cost of Debt of Rimbunan Sawit Bhd (RSAWIT.KL) is 4.25%.

Range Selected
Cost of equity 8.70% - 11.70% 10.20%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.5% - 8.4% 7.5%
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 0.72 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.70%
Tax rate 24.00% 24.00%
Debt/Equity ratio 0.65 0.65
Cost of debt 4.00% 4.50%
After-tax WACC 6.5% 8.4%
Selected WACC 7.5%

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 (10.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.