UOAREIT.KL WACC - Weighted Average Cost of Capital
The WACC of UOA Real Estate Investment Trust (UOAREIT.KL) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.4% | 8.35% |
| Tax rate | 4.2% - 5.4% | 4.8% |
| Cost of debt | 4.0% - 6.9% | 5.45% |
| WACC | 5.3% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.51 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.4% |
| Tax rate | 4.2% | 5.4% |
| Debt/Equity ratio | 1.31 | 1.31 |
| Cost of debt | 4.0% | 6.9% |
| After-tax WACC | 5.3% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UOAREIT.KL | UOA Real Estate Investment Trust | 1.31 | 0.19 | 0.08 |
| ALAQAR.KL | Al-Aqar Healthcare REIT | 0.73 | 0.16 | 0.09 |
| AMFIRST.KL | AmFIRST Real Estate Investment Trust | 3.68 | 0.57 | 0.13 |
| BOFFICE.BK | Bhiraj Office Leasehold Real Estate Investment Trust | 0.61 | 0.35 | 0.22 |
| ECF.AX | Elanor Commercial Property Fund | 0.78 | 0.64 | 0.37 |
| GDF.AX | Garda Diversified Property Fund | 0.89 | 0.12 | 0.07 |
| POPF.BK | Prime Office Leasehold Property Fund | 0.08 | 0.68 | 0.63 |
| SENTRAL.KL | Sentral REIT | 1.27 | 0.32 | 0.14 |
| SPRIME.BK | S Prime Growth Leasehold REIT | 0.8 | 0.2 | 0.12 |
| TWRREIT.KL | Tower Real Estate Investment Trust | 1.58 | 0.58 | 0.23 |
| Low | High | |
| Unlevered beta | 0.12 | 0.17 |
| Relevered beta | 0.27 | 0.39 |
| Adjusted relevered beta | 0.51 | 0.59 |
UOAREIT.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 UOAREIT.KL:
cost_of_equity (8.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.51) + 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.