CFM.KL WACC - Weighted Average Cost of Capital
The WACC of Computer Forms (Malaysia) Bhd (CFM.KL) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.0% | 8.55% |
| Tax rate | 4.0% - 4.7% | 4.35% |
| Cost of debt | 5.1% - 7.0% | 6.05% |
| WACC | 6.8% - 9.5% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.49 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.0% |
| Tax rate | 4.0% | 4.7% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 5.1% | 7.0% |
| After-tax WACC | 6.8% | 9.5% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CFM.KL | Computer Forms (Malaysia) Bhd | 0.18 | 0.87 | 0.74 |
| 1481.HK | Smart Globe Holdings Ltd | 0.02 | -0.34 | -0.34 |
| 534190.BO | Olympic Cards Ltd | 5.11 | 0.15 | 0.02 |
| 8450.HK | EDICO Holdings Ltd | 0.02 | -0.81 | -0.79 |
| BQC.SI | A-Smart Holdings Ltd | 0.16 | 0.81 | 0.7 |
| FIMACOR.KL | Fima Corporation Bhd | 0.2 | 0.4 | 0.34 |
| HTP.VN | Hoaphat Textbook Printing JSC | 4.2 | 0.38 | 0.08 |
| MTAG.KL | Mtag Group Bhd | 0.01 | 0.82 | 0.82 |
| NGGB.KL | Nextgreen Global Bhd | 0.08 | 0.59 | 0.55 |
| TIENWAH.KL | Tien Wah Press Holdings Bhd | 0.13 | 0.33 | 0.29 |
| Low | High | |
| Unlevered beta | 0.2 | 0.42 |
| Relevered beta | 0.24 | 0.49 |
| Adjusted relevered beta | 0.49 | 0.66 |
CFM.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 CFM.KL:
cost_of_equity (8.55%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.49) + 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.