TAANN.KL
Ta Ann Holdings Bhd
Price:  
3.98 
MYR
Volume:  
182,500.00
Malaysia | Paper & Forest Products
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TAANN.KL WACC - Weighted Average Cost of Capital

The WACC of Ta Ann Holdings Bhd (TAANN.KL) is 11.2%.

The Cost of Equity of Ta Ann Holdings Bhd (TAANN.KL) is 12.05%.
The Cost of Debt of Ta Ann Holdings Bhd (TAANN.KL) is 4.25%.

Range Selected
Cost of equity 9.70% - 14.40% 12.05%
Tax rate 25.00% - 25.30% 25.15%
Cost of debt 4.00% - 4.50% 4.25%
WACC 9.1% - 13.3% 11.2%
WACC

TAANN.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.87 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 14.40%
Tax rate 25.00% 25.30%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.00% 4.50%
After-tax WACC 9.1% 13.3%
Selected WACC 11.2%

TAANN.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 TAANN.KL:

cost_of_equity (12.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.87) + 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.