TALAMT.KL WACC - Weighted Average Cost of Capital

The WACC of Talam Transform Bhd (TALAMT.KL) is 12.5%.

The Cost of Equity of Talam Transform Bhd (TALAMT.KL) is 8.45%.

The Cost of Debt of Talam Transform Bhd (TALAMT.KL) is 22.25%.

	Range	Selected
Cost of equity	6.80% - 10.10%	8.45%
Tax rate	0.10% - 0.20%	0.15%
Cost of debt	7.00% - 37.50%	22.25%
WACC	6.9% - 18.1%	12.5%

WACC

TALAMT.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	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.10%

Tax rate	0.10%	0.20%
Debt/Equity ratio	0.41	0.41
Cost of debt	7.00%	37.50%

After-tax WACC	6.9%	18.1%


Selected WACC	12.5%

TALAMT.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 TALAMT.KL:

cost_of_equity (8.45%) = 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.