CHINWEL.KL
Chin Well Holdings Bhd
Price:  
0.80 
MYR
Volume:  
49,500.00
Malaysia | Machinery
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CHINWEL.KL WACC - Weighted Average Cost of Capital

The WACC of Chin Well Holdings Bhd (CHINWEL.KL) is 10.4%.

The Cost of Equity of Chin Well Holdings Bhd (CHINWEL.KL) is 10.50%.
The Cost of Debt of Chin Well Holdings Bhd (CHINWEL.KL) is 4.25%.

Range Selected
Cost of equity 8.20% - 12.80% 10.50%
Tax rate 23.60% - 26.40% 25.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.1% - 12.8% 10.4%
WACC

CHINWEL.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.64 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 12.80%
Tax rate 23.60% 26.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 8.1% 12.8%
Selected WACC 10.4%

CHINWEL.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 CHINWEL.KL:

cost_of_equity (10.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.64) + 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.