ULICORP.KL WACC - Weighted Average Cost of Capital

The WACC of United ULI Corporation Bhd (ULICORP.KL) is 11.2%.

The Cost of Equity of United ULI Corporation Bhd (ULICORP.KL) is 11.90%.

The Cost of Debt of United ULI Corporation Bhd (ULICORP.KL) is 4.30%.

	Range	Selected
Cost of equity	10.20% - 13.60%	11.90%
Tax rate	25.50% - 26.00%	25.75%
Cost of debt	4.10% - 4.50%	4.30%
WACC	9.6% - 12.8%	11.2%

WACC

ULICORP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.94	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.60%

Tax rate	25.50%	26.00%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.10%	4.50%

After-tax WACC	9.6%	12.8%


Selected WACC	11.2%

ULICORP.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 ULICORP.KL:

cost_of_equity (11.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.94) + 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.