TALAMT.KL WACC - Weighted Average Cost of Capital

The WACC of Talam Transform Bhd (TALAMT.KL) is 12.2%.

The Cost of Equity of Talam Transform Bhd (TALAMT.KL) is 8.20%.

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

	Range	Selected
Cost of equity	6.20% - 10.20%	8.20%
Tax rate	0.10% - 0.20%	0.15%
Cost of debt	7.00% - 37.50%	22.25%
WACC	6.4% - 17.9%	12.2%

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	0.35	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.20%

Tax rate	0.10%	0.20%
Debt/Equity ratio	0.4	0.4
Cost of debt	7.00%	37.50%

After-tax WACC	6.4%	17.9%


Selected WACC	12.2%

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 (8.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.35) + 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.