CHINHIN.KL WACC - Weighted Average Cost of Capital

The WACC of Chin Hin Group Bhd (CHINHIN.KL) is 7.2%.

The Cost of Equity of Chin Hin Group Bhd (CHINHIN.KL) is 7.80%.

The Cost of Debt of Chin Hin Group Bhd (CHINHIN.KL) is 5.50%.

	Range	Selected
Cost of equity	6.70% - 8.90%	7.80%
Tax rate	18.80% - 23.50%	21.15%
Cost of debt	5.50% - 5.50%	5.50%
WACC	6.3% - 8.1%	7.2%

WACC

CHINHIN.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	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.90%

Tax rate	18.80%	23.50%
Debt/Equity ratio	0.21	0.21
Cost of debt	5.50%	5.50%

After-tax WACC	6.3%	8.1%


Selected WACC	7.2%

CHINHIN.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 CHINHIN.KL:

cost_of_equity (7.80%) = 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.