CANONE.KL
Can-One Bhd
Price:  
2.08 
MYR
Volume:  
4,000.00
Malaysia | Food Products
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CANONE.KL WACC - Weighted Average Cost of Capital

The WACC of Can-One Bhd (CANONE.KL) is 8.0%.

The Cost of Equity of Can-One Bhd (CANONE.KL) is 9.45%.
The Cost of Debt of Can-One Bhd (CANONE.KL) is 10.05%.

Range Selected
Cost of equity 6.80% - 12.10% 9.45%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 4.50% - 15.60% 10.05%
WACC 4.1% - 11.9% 8.0%
WACC

CANONE.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.43 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 12.10%
Tax rate 24.00% 24.00%
Debt/Equity ratio 4.33 4.33
Cost of debt 4.50% 15.60%
After-tax WACC 4.1% 11.9%
Selected WACC 8.0%

CANONE.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 CANONE.KL:

cost_of_equity (9.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.