CENSOF.KL WACC - Weighted Average Cost of Capital

The WACC of Censof Holdings Bhd (CENSOF.KL) is 13.6%.

The Cost of Equity of Censof Holdings Bhd (CENSOF.KL) is 13.85%.

The Cost of Debt of Censof Holdings Bhd (CENSOF.KL) is 4.35%.

	Range	Selected
Cost of equity	11.10% - 16.60%	13.85%
Tax rate	26.60% - 34.30%	30.45%
Cost of debt	4.20% - 4.50%	4.35%
WACC	10.9% - 16.2%	13.6%

WACC

CENSOF.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.07	1.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	16.60%

Tax rate	26.60%	34.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.20%	4.50%

After-tax WACC	10.9%	16.2%


Selected WACC	13.6%

CENSOF.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 CENSOF.KL:

cost_of_equity (13.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.07) + 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.